"We drove a higher-average ticket, and overcame softness in lower-priced, traffic-building categories, such as CDs and DVDs," says Brad Anderson, vice chairman and CEO of the retailer. U.S. Best Buy stores reported a third-quarter comparable store sales gain of 3% compared with 3Q 2003.

The company's international stores, comprised of Future Shop and Best Buy stores in Canada, did even better by that measure, with a comparable store sales gain of 5% percent, according to the company. Magnolia Audio Video stores--which sell high-end products at 22 stores in California, Oregon and Washington--enjoyed a comparable store sales gain for the quarter of 7.2%.

"Comparable store sales were strongest early in the quarter and moderated into November," says Darren Jackson, EVP-finance and CFO of Best Buy. "We did notice a slowdown in sales of low-priced merchandise throughout the quarter, yet we finished the it with a solid final week. After looking at revenue trends, and weighing the two extra shopping days before Christmas as well as the anticipated popularity of gift cards, we're reasonably optimistic that our fourth-quarter revenue will meet our expectations."