Best Buy 4Q profit dips, but results top expectations

CHICAGO -- â€”  Consumers snapped up surprising numbers of flat-screen televisions, laptops, digital cameras and cellphones during Best Buy Co.’s latest quarter, helping boost revenue 10%, the company reported Thursday.

Sales in the fiscal fourth quarter that ended Feb. 28 were strongest in February, and the world’s largest consumer electronics retailer said same-store sales might have been even better if a plan to scale back inventory hadn’t left some stores short of items that shoppers were seeking.

“We were surprised with demand,� said Chief Operating Officer Brian Dunn, who is set to become chief executive this summer. “We know we left some sales on the table in January and February.�

Despite the revenue growth, the world’s largest consumer electronics chain said its profit sank 23%, mostly because of one-time charges.

Executives promised to take advantage of the liquidation of their closest competitor to attract customers who used to shop at the now-defunct Circuit City Stores Inc. “We believe this environment presents a tremendous amount of opportunity, and we intend to take full advantage of those opportunities,� Dunn said.

Richfield, Minn.-based Best Buy spent the quarter wading through a series of internal and industry changes, offering buyouts to corporate staff members before laying off workers at its headquarters. And it announced Dunn’s appointment.

Profit fell to $570 million, or $1.35 a share, as restructuring charges dragged down results. That compares with $737 million, or $1.71, a year earlier

Excluding those one-time charges, which amounted to 26 cents a share, Best Buy earned $682 million, or $1.61 a share -- well ahead of forecasts. Revenue grew 10% to $14.72 billion.

The retailer also gave a better-than-expected outlook for the full year but cautioned that the recession and consumers’ unwillingness to shell out for some big-ticket items made forecasting difficult.

Best Buy shares climbed $4.21, or 12.6%, to $37.67.