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Best Buy slumps on disappointing earnings

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Best Buy's stock fell 6% at the start of trading after the retailer released disappointing quarterly results.

The big box electronics retail chain announced that net earnings for its first quarter, which ended on May 29, were $155 million, or 36 cents per diluted share.

Profits were up only slightly from a year ago and fell well short of analysts' forecasts for a profit of 50 cents a share, according to Thomson Reuters.

Best Buy reported sales of $10.8 billion for the quarter, up 7% from the same period last year but narrowly missing consensus estimates of $10.9 billion.

Best Buy (BBY, Fortune 500) said that same-store sales rose 2.8% overall. The company said the increase was driven by strong sales of notebook computers, mobile phones and appliances. But the company added that sales fell in products related to gaming, music, movies and televisions.

The last month of Best Buy's most recent quarter was a tough one for the entire retail sector. The Commerce Department on Friday said that retail sales fell by 1.2% in May, bucking economists' forecast of a 0.2% rise.

Other retailers with a big presence in electronics didn't get hit has hard as Best Buy in early morning trading though. Target (TGT, Fortune 500) gained 1%, while Wal-Mart Stores (WMT, Fortune 500) was unchanged. To top of page

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