Best Buy's most recent quarterly earnings, which fell 29% from a year ago, hurt by offering free shipping on Internet orders in attempt to compete with Amazon.com
December 14, 2011
– In a bid to rival Amazon.com Inc. and lure customers, Best Buy Co. Inc. has begun offering free shipping on all Internet orders as its quarterly earnings fell by 29%, The Wall Street Journal reported on Dec. 14.
Out of all the major U.S. retailers, Best Buy is the only one to report earnings midway through the 2011 holiday season.
Prompted in part by its Black Friday promotions, Best Buy saw its sales rise for the first time in six months. This included a 20% increase in online sales, which was no doubt at least partially prompted by Best Buy’s free shipping offer.
Best Buy’s margin on earnings during the last quarter was 6.1% after amortization, depreciation and interest.
The primary source of this article is The Wall Street Journal, New York, New York, on December 14, 2011.