Best Buy has bad fourth quarter

Economic downturn has major retailers ailing
Best Buy, America's biggest electronics chain, saw sales and profits decline in the quarter that ended March 1.
Spencer Platt/Getty Images

Profits at Richfield-based Best Buy fell 23 percent in the quarter that ended March 1. The company earned $570 million in the period.

Along with profits, a key measure of sales also fell. Best Buy stores open at least 14 months saw sales drop about 5 percent in the quarter.

Best Buy's performance exceeded Wall Street analysts' expectations. Analysts predicted the retailer would be hurt more by the recession, as consumers rein in spending.

Best Buy says December was its toughest month, but things picked up in January and February.

Best Buy, the world's biggest consumer electronics retailers, says it's been gaining market share. Several long-time rivals, notably Circuit City, have gone out of business.

Despite the tough environment, Best Buy is continuing to expand. The company plans to open about 65 new stores in its current accounting year.