So the positive:
Net earning up, $254 Million vs. $158 Million last year.
Revenue also up, $11.3 Billion vs. $11 Billion last year.
Now the "Not so good" if you read through the detail
Comp Store down 0.1%
Continued softness in television and software sales - let me point out that TVs are one of if not THE largest category for Best Buy and shrinking margin and sales in this category can not be made up by others in their box.
The improvement in earning was driven by lowering promotional cost - risk in traffic and sales
They also narrowed their comp guidance to 1%-2% vs a previous 1%-3%, showing continued concerned about the rest of the year and the ability to drive top line sales
Obviously trying to focus on margin for the rest of the year, but to do it, and continue to have soft sales and decreasing traffic this could be much harder than they are forecasting
Thoughts???? Let me know.
JZ
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