Best Buy Co. Inc.
(BBY) recently announced its plan to open 22 new U.S. stores in its fiscal third 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.
Currently, Best Buy operates 1,044 U.S. stores in 50 states and Puerto Rico. The company added 21 stores in the first six months of the fiscal year 2010. It opened 9 stores in the first quarter and another 12 stores in the second quarter.
Best Buy’s pace of opening new stores in the current fiscal year is substantially low compared to prior year quarters. Amid the challenging global economy and tough retail environment, we believe that the company has taken prudent steps to move steadily, rather than aggressively.
In fiscal year 2009, Best Buy opened 26 stores in the first quarter, 24 in the second quarter, and 37 stores in the third quarter.
The company will report its fiscal second quarter results on Sept 15.
During the first quarter, the company’s revenues jumped 12% year over year to $10,095 million primarily due to the addition of Best Buy Europe’s revenues and net addition of 185 new stores in the past 12 months, partially offset by a 6.2% decline in comparable store sales. Earnings per share fell 2.3% to 42 cents per share.
Best Buy is a global retailer of technology and entertainment products with operations in the United States, Canada, Europe, China and Mexico.
Read the full analyst report on “BBY”
Zacks Investment Research