Best Buy Company’s (BBY) pace of opening new stores in the current fiscal year of 2010 is substantially low compared to prior year quarters.
Best Buy announced its plan to open 22 new U.S. stores in the third quarter of fiscal year 2010 compared to 37 stores opened in the prior-year quarter. The stores will be opened in Virginia, Texas, Florida, Pennsylvania, Mississippi, New York, Ohio, California, Wisconsin, Puerto Rico, Arkansas, New Jersey, Massachusetts and Louisiana.
The company added 21 stores in the first six months of fiscal year 2010. It opened 9 stores in the first quarter and another 12 stores in the second quarter of 2010. In fiscal year 2009, Best Buy opened 26 stores in the first quarter and 24 in the second quarter.
Amid the challenging global economy and tough retail environment, we believe that the company has taken prudent steps to move steadily, rather than aggressively.
The company also recently reported its fiscal second quarter results on Sept. 15.
During the second quarter, total revenue climbed 12.5% to $11,022 million, driven by the inclusion of Best Buy Europe’s sales and the net addition of 170 stores, partially offset by a 3.9% decline in comparable store sales and the pull of the stronger dollar. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate of 42 cents, and dropped 22.9% year-over-year from 48 cents.
Best Buy also raised its fiscal year 2010 guidance. Management now expects earnings per share (EPS) in the range of $2.70 to $3.00 for fiscal year 2010, up from $2.50 to $2.90 predicted earlier. Revenue for the year is expected in the range of $48 billion to $49 billion, up from the previous forecast of $46.5 billion to $48.5 billion.
Best Buy is a global retailer of technology and entertainment products with operations in the United States, Canada, Europe, China and Mexico.
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