Best Buy's Profits Drop

It’s no secret that retailers are having a tough time. Best Buy (BBY) just reported that its earnings dropped from 43 cents a share in last year’s first quarter to 36 cents a share for this year’s first quarter. Sales rose 12% to $10.1 billion.

The stock is selling off this morning but I think it’s a good buy for investors. The company actually gained market share thanks to the demise of Circuit City. Also, when you exclude restructuring charges, BBY’s earnings came in at 42 cents a share which was eight cents higher than Wall Street’s consensus. I think this indicates that the company will do well once the economy begins to recover.

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