Same-store sales rose 3.3% and total revenue was up 10%, to $7.3 billion during the quarter, which ended Nov. 26. Net earnings jumped 11%, to $125 million. But selling, general and administrative spending increased to 21.8% of revenues from 20.3% in the year-ago quarter.

"As a whole we are not seeing the return we expected," said Brad Anderson, Best Buy's vice chairman and chief executive officer of the renovated stores, during a conference call. The company's spending has reached an "unsustainable level" and executives must "scrutinize investments," he adds.

The company also faced challenges in Canada, where its same-store sales fell by 0.5% due to a tough competitive environment, executives say. Best Buy opened its first seven stores in the province of Quebec along with a total of 16 in the country during the quarter. Best Buy currently operates 166 stores under the Best Buy, Future Shop and Geek Squad names north of the border.