Best Buy yesterday announced revenue and profits are up, especially for flat panel TVs. Net income in the 2nd quarter increased 27% over the comparable quarter in 2005, to $0.47 per share. Total revenue, sales at comparable stores, income as a percent of revenue and net earnings were all up, compared to last year. And last year wasn’t a bad year for Best Buy.

One of the interesting features of the Best Buy growth was the change in the mix. Sales of consumer electronics increased their revenue share from 41% to 44% of the total sales. Comparable store sales of consumer electronics also grew 8.9% and represented virtually all of the comparable store sales growth.

According to the press release, "Best Buy’s comparable store sales gain was driven by higher revenue from flat-panel televisions, notebook computers, gaming and computer services."

Within consumer electronics, flat-panel TVs experienced a triple-digit comparable store sales gain due to higher volumes, which were in turn driven by declining prices. The improved assortment of flat-panel TVs in larger screen sizes helped also. According to the company, total television sales at comparable stores grew by solid-double-digits as flat-panel TV growth was partially offset by declines in comparable store sales of tube and projection TVs.

On September 6th in the Daily Display article, I commented on the voracious appetite of the Chinese electronics industry for large flat panels. For Best Buy, at least, this voracious appetite is echoed by the North American consumer. This is good news for Best Buy, the Chinese electronics industry and the flat panel industry in general. Maybe that Gen 10 fab for $4.25B will be justified after all. –MB

For an expanded version of this article, see the September HDTV Retailer