"We are extremely pleased with the first-quarter results, which exceeded our expectations on several dimensions," said Brad Anderson, vice chairman and CEO of Best Buy. Anderson noted the company's customer-centric operating model was a key driver in the strong Q1 performance. "By empowering our employees to focus on our customers' needs and lifestyles, we continue to generate solid, profitable revenue growth with existing and new customers," Anderson said.
As a result of the opening of new stores and a comparable-store sales gain of 4.4%, North American Best Buy stores reported revenues of $6.1 billion, a 12% increase from 2004. US Best Buy stores reported revenue of $5.5 billion and a first-quarter comparable store sales gain of 4.5%, which was reflective of higher average ticket sales.
The company's Canadian stores, Future Shop and Best Buy, generated revenues of $626 million and a comparable store sales gain of 3% for the quarter. Magnolia Audio Video stores reported revenue of $30 million, including a comparable store sales gain for the quarter of 1.4%.
The company reports that the consumer electronics product group represented 40% of quarter's revenue, home office products represented 34%, and the entertainment software product group comprised 20% of revenue. Consumer spending was heavily concentrated on MP3 players, digital TVs, video games, digital cameras and notebook computers, offsetting the impact of declining product categories, such as desktop computers, analog televisions and cellular phones.
During the first quarter the company opened 11 US Best Buy stores, two Canadian Best Buy stores and one Future Shop store. At the end of the first quarter, the company operated 679 US Best Buy stores, 20 Magnolia Audio Video stores, 32 Canadian Best Buy stores and 115 Future Shop stores.
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