Best Buy Credits HD Sales for Q2 Profits
September 13, 2006
Brisk sales of HD sets and other flatscreen wares in the United States were instrumental in giving Best Buy a second quarter profit increase of 22 percent. The positive sales report issued on Sept. 12 surpassed Wall Street expectations and saw the firm's shares grow by nearly 10 percent by the close of stock exchange business on Tuesday, according to the Associated Press.
The Minneapolis-based big box chain, the nation's largest CE retailer, said it would add more TV installers and boost its ad budget to keep the momentum in (mostly HD) flatscreen units progressing into the start of the traditional holiday season.
The AP reports the strong results in HD and other CE sales come amid some wariness over the economy, especially the possible effects of higher interest rates and a subdued housing market, which Best Buy said has begun affecting sales of its kitchen appliances.