For the quarter, total sales jumped 18% to $6.03 billion, as Best Buy continues to gain market share in notebook computers, advanced TVs, digital cameras and camcorders. At the same time, a revamped Circuit City
Interestingly, Best Buy also conceded that, "comparable store sales for video game hardware and software declined by the low double digits." In what was supposed to be a promising holiday season for video games, the company said that lower hardware prices and slow software sales hurt results.
This news put a huge damper on shares of pure-play video game retailers Electronics Boutique
In addition to being a royal pain to Circuit City, Best Buy has made the right moves for its own shareholders. After deciding that the unit was biting too much in to earnings, Best Buy finally shed Musicland in June. In October, the company announced that it would pay its first dividend.
Longer-term, BestBuy.com should become a force, given the company's ability to offer free shipping on media. Near term, investors can look forward to Dec. 17, when both Best Buy and Circuit City report earnings.