US - Major US consumer electronics retailer Best Buy has reported its first quarter results, for the 3 months ended May 30, 2009. The company announced a 15% decline in net earnings when compared with the corresponding period last year, with adjusted net earnings of US$178 million. 

In response to these results, Best Buy president and COO and soon-to-be CEO (he assumes this position on June 24), Brian Dunn says that engaged employees will continue to be the key point of difference to keep consumers returning to Best Buy. 

“We believe the success of our company is based on our ability to build relationships with customers around the world,” Dunn said.

“That begins with engaged employees, with a clear picture of how they can contribute to our story. Regardless of the environment we find ourselves in, we know that our people will continue to be our key point of differentiation in helping Best Buy grow. We believe this was the driving force behind our better-than-expected results in the first quarter,” he added. 

Not all doom and gloom, Q1 brings gains in domestic market share and gross profit 
According to Best Buy, company revenue increased by 12% to $10.1 billion, compared with $9.0 billion for the corresponding period last year. 

The company attributes these gains to the inclusion of Best Buy Europe’s revenue and gains from the net addition of 185 net new stores in the past 12 months. However, revenue gains were partially offset by a comparable store sales decline of 6.2% and the “unfavourable” impact of foreign currency fluctuations. Domestic comparable store sales declines were highest during the month of May. 

“Though we are never pleased to report a decline in comparable store sales, we are pleased to see areas of strength across the business,” Best Buy CEO-International, Bob Willett said.

“Our European business grew revenue in the fiscal first quarter and continued to show market share gains in the U.K. pre-pay market. In China, we saw gross profit rate improvement year-over-year and are beginning to recognize the benefits of our investments in infrastructure as we deployed new capabilities in the country. We remain focused on what matters most to us – helping our global customers navigate the connected world,” he added. 

Strategic highlights for the rest of the fiscal year 
Best Buy indentified four key business priorities for growth during the remainder of the fiscal year. These include: 

• Grow Market Share. 

• International Growth- Best Buy opened five large-format stores in China and Canada during the first fiscal quarter. In addition, the 30 mid-size “Wireless World” stores further expanded the customer proposition by embracing gaming and extended notebook computer offerings combined with Geek Squad support. 
The company has identified four big-box sites in the U.K. and remains committed to opening its first large-format stores there during fiscal 2010. 

• Connected Digital Solutions- growth in Best Buy Mobile sector. 

• Efficient and Effective Enterprise- limited spending and focus investments on growth opportunities. 

“These four priorities represent business opportunities where Best Buy believes it can utilise the current economic climate to accelerate its strong position and take greater advantage of the eventual economic recovery,” the company said in a press release.