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Best Buy reported loss in the first quarter

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Staff writer | Thursday May 23, 2013 9:30AM ET
Best BuyBest Buy Q1 2014 results include domestic revenue of $7.98 billion, declined 9.6% compared to the last year, on revenue declined 2.2%.


This 2.2% decline was driven by the loss of revenue from 49 large format stores that were closed last year, and a comparable store sales decline of 1.1%. Comparable store sales were negatively impacted by an estimated 80 basis points impact from the shift of the Super Bowl into last year’s fourth quarter, and an estimated 30 basis point impact from our decision to reduce sales in certain non-core businesses.

Domestic online revenue of $498 million increased 7.1% versus last year. Excluding the additional week last year, comparable online sales increased 16.3% due to increased traffic and higher conversion across our multiple online platforms.

Domestic gross profit rate was 23.4% versus 25.3% last year. This 190 basis point decline was primarily driven by a greater investment in price competitiveness, including higher promotional activity in mobile and computing, higher inventory shrinkage, and increased product warranty-related costs. These impacts were partially offset by proceeds from legal settlements.

International revenue of $1.40 billion, declined 9.6% compared to the last year. Excluding the additional week revenue declined 5.1%. This 5.1% decline was driven by the loss of revenue from 15 large format stores that were closed last year in Canada, and a comparable store sales decline of 2.8%.

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