Jan 11 - Best Buy's total revenue slipped to $12.8 billion during the key holiday shopping season, but the drop was not as big as feared that to U.S. consumers. Conway G. Gittens reports.
The Daily Digit is $12.8 billion. Best Buy's total revenue slipped 0.4% to $12.8 billion in the nine weeks ended January 5th. Same-store sales were flat in the United States, which was much better than the more than two percent drop some analysts expected. Hot holiday items included mobile phones, tablet/e-readers and appliances. Not so popular were entertainment devices, television sets and non-tablet computers. The numbers were not so good outside of the U.S. Sales at international stores opened at least a year fell 6.4 percent on backslides in Canada and China. Despite those not so bad sales figures in the U.S., the company - slashing expectations for free cash flow. It had to pay for some inventory earlier than expected. Best Buy is in the midst of a restructuring and faces a looming buyout proposal by founder and former chairman Richard Schulze. It is expected to report full fourth-quarter results on February 28.