Best Buy shares fell more than 5 percent in Tuesday morning trading after the Minneapolis-based electronics retailer missed Wall Street sales and earnings expectations for the first fiscal quarter ended May 29.
The company reported $155 million in net income, or 36 cents per share, on sales of $10.79 billion for the quarter. Analysts were expecting earnings of 50 cents per share on revenue of $10.94 billion for the quarter.
In the year-ago quarter, Best Buy earned $153 million, or 36 cents per share, on $10.09 billion in sales.
Shares were trading at $38.80 Tuesday, down $2.40, or 5.9 percent, per share.
The 7 percent increase in sales was due in large part to new stores opened during the past 12 months. Sales increased 2.8 percent in comparable stores year-over-year, according to the company. In the U.S., sales increased 5 percent, including a 1.9 percent increase for comparable stores year-over-year.
Domestic stores saw a low-double-digit increase in notebook computers, mobile phones and appliances, according to the company. Those gains were partially offset by decreases in gaming, music and movies, according to Best Buy. Television unit sales increased by a high single-digit, but revenue declined because of a sharper decline in the average selling price per unit, according to Best Buy.
In the U.S., Best Buy home office revenue was 37 percent of total sales, up 9.7 percent in comparable store sales from the year-ago quarter. Best Buy services revenue fell 4.2 percent compared to last year. Consumer electronics sales were flat, entertainment software fell 12.8 percent and appliances increased 14.4 percent.
