Company Press Release
SOURCE: Best Buy Co., Inc.
Best Buy Achieves $10 Billion Sales Milestone; Reports Record 4th Quarter and Fiscal Year '99 Sales
MINNEAPOLIS, March 4 /PRNewswire/ -- Best Buy Co., Inc. (NYSE: BBY - news) today reported record sales for its fiscal 1999 fourth quarter and fiscal year, ended February 27, 1999.
According to Richard M. Schulze, chairman and chief executive officer, sales for the fourth quarter were $3.456 billion, a 21% increase compared to the $2.852 billion achieved for the comparable period last year. Fiscal 1999 sales were $10.076 billion, also a 21% increase, compared to $8.358 billion last year.
Comparable store sales increased 10.8% for the fourth quarter on top of the 16.9% increase during the same period last year. For the fiscal year comparable store sales increased 13.5% in comparison to the 2.0% increase reported last year.
''Our sales for the fourth quarter capped a truly outstanding year at Best Buy, far surpassing our earlier expectations,'' Schulze said. ''Strong consumer spending combined with rapid acceptance of new technology products and a stellar performance by all of our employees drove us past $10 billion in sales.'' Fiscal year and fourth quarter earnings are scheduled to be released Tuesday, March 30, 1999, prior to the opening of trading on the New York Stock Exchange.
The retail store sales mix by major product category for the comparable quarters and full fiscal year periods were as follows:
Quarter Ended Fiscal Year Ended
2/27/99 2/28/98 2/27/99 2/28/98
Home Office 34% 35% 36% 38%
Consumer Electronics 28% 28% 27% 26%
Entertainment Software 23% 23% 20% 20%
Appliances 6% 6% 8% 9%
Other 9% 8% 9% 7%
TOTAL 100% 100% 100% 100%
During the fiscal year Best Buy opened 28 stores, relocated four, expanded two, and closed one undersized store following the expiration of the lease. The Company plans to grand open approximately 45 stores in the coming fiscal year including entry into the new markets of Sacramento and San Francisco, Calif.; Northern Florida; upstate New York and Richmond and Norfolk, Va.
Best Buy announced on Monday, February 22 that its Board of Directors approved a 2-for-1 stock split payable in the form of a 100% stock dividend. Shareholders of record as of today, will receive one additional share for each share held, to be issued Thursday, March 18, 1999. This is the sixth split since Best Buy went public in 1985. The last split, also a 2-for-1, was in May 1998.
Statements made in this news release, other than those concerning historical financial information, should be considered forward looking and subject to various risks and uncertainties. Such forward-looking statements are based on management's beliefs and assumptions regarding information currently available, and are made pursuant to the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those expressed in the forward-looking statements. Factors that could cause results to vary include, among others, those identified in the Company's filings with the Securities and Exchange Commission. The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release.
Best Buy's quarterly financial results and news releases can be found on the Internet at the Company's Web site, bestbuy.com , or accessed via PR Newswire's Web site at www.prnewswire.com. For an immediate faxed copy call ''Company News on Call'' by dialing 800-758-5804 and then entering the access code 098313.
Founded in 1966, Minneapolis-based Best Buy Co., Inc. is the nation's largest volume specialty retailer of name brand consumer electronics, personal computers, entertainment software and appliances. The Company is ranked 199 on the Fortune 500 and operates 311 stores in 36 states. For CDs and DVD movies, visit the Company's on-line store at bestbuy.com |
