Best Buy Q1 profit falls 12%, results still beat Street
Minneapolis — Best Buy Co. reported Tuesday that net income for the first quarter fell 12% to $136 million, hurt by increased promotions and lower demand for such items as flat-panel televisions and digital cameras. But strong showings in China, mobile phone sales and online performance pushed helped to boost profit and revenue past analyst estimates.
Revenue edged up 1% to $10.9 billion on a 12% jump in online revenue. Same-store sales dipped 1.7%. However, domestic online sales rose 12%, while domestic mobile-phone comparable sales jumped 28%. Tablet computers, digital book readers, appliances and services also saw higher demand.
Best Buy has shored up its profit picture by shifting toward more profitable products such as mobile phones, video games, appliances, e-readers and tablets.
South Africa makes aggressive intervention in Wal-Mart bid
Johannesburg, South Africa — A Tuesday report by Bloomberg said that South Africa’s Economic Development Ministry made an “aggressive intervention” in Wal-Mart Stores’ bid to buy a stake in Massmart Holdings Ltd.
South Africa’s Trade, Economic Development and Agriculture Ministries made a joint bid to the Competition Tribunal to force Wal-Mart to restrict imports if it buys a controlling stake in Johannesburg-based Massmart, concerned about job losses.
That action failed, with the competition authority on June 1 allowing Wal-Mart to proceed with its $2.4 billion purchase on condition no jobs are cut for two years.
Casey’s Q4 profit up 4% on strong revenue
Ankeny, Iowa — C-store operator Casey’s General Stores said Monday that profit for the quarter ended April 30 rose 4% to $22.8 million, compared with $21.9 million in the year-ago period.
Revenue surged 31% to $1.55 billion, surpassing Wall Street expectations of $1.57 billion in revenue. Same-store sales rose almost 5% on groceries and other merchandise and increased 12% on food and fountain drinks. Same-store gasoline sales fell 2% on rising prices.