First-quarter profits at US electricals retailer Best Buy have been impacted by restructuring costs, including those incurred by its joint venture with Carphone Warehouse.
In the first quarter to May 30, net profits at Best Buy declined 15 per cent to $153m (£93.5m).
Restructuring charges, including the impact of corporate restructuring at Best Buy Europe, hit income by $25m (£15.3m) during the quarter.
Sales at Best Buy grew 12 per cent to $10.1bn (£6.17bn) during the quarter, reflecting the inclusion of Best Buy Europe’s sales with the addition of 185 new stores.
Like-for-likes, however, fell 6.2 per cent and sales were impacted by foreign currency fluctuations.
Internationally, first-quarter sales grew 67 per cent to $2.6bn (£1.57bn), driven by the inclusion of Best Buy Europe. The growth was offset by currency fluctuations and like-for-likes were down 13.9 per cent.
Best Buy International chief executive Bob Willett said: “Our European business grew revenue in the fiscal first quarter and continued to show market share gains in the UK pre-pay market.”
First-quarter sales in its domestic market were $7.5bn (£4.58bn), up 1 per cent. Like-for-likes fell 4.9 per cent as footfall fell and sales fell in gaming, digital cameras, appliances and movies.
Best Buy chief operating officer Brian Dunn, who will become chief executive on June 24, said: “Regardless of the environment we find ourselves in, we know that our people will continue to be our key point of differentiation in helping Best Buy grow. We believe this was the driving force behind our better-than-expected results in the first quarter.”
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