Best Buy (BBY) earnings see a 15% quarterly revenue increase

Consumer electronics leader Best Buy Co. (NYSE: BBY) reported better-than expected second quarter earnings this morning. The largest consumer electronics retailer in the U.S. said that it saw revenue of $8.75 million for the quarter, an increase of 15% from the year-ago quarter. Apparently, all those flat-panel television sale decreases were not as damaging as feared.

But that's not what Best Buy execs pegged as the reason for the quarterly lift. Back-to-school sales were single-handedly referenced as the reason for the increase, which means computers, computers and more computers. Either that, or students were buying new stereo receivers and plasma TVs for those dorm rooms. Some smart ones maybe bought washing machines and dryers (heh).

That is not all. Best Buy added 113 new stores in the quarter (yeah, I can see that helping), all of which sold back-to- school supplies in abundance during the quarter. Best Buy was also said to have taken market share from competitor Circuit City Stores, Inc. (NYSE: CC) in the quarter due to newer stores being placed in better locations. Add that to a better customer environment and very good management of cost controls and it's no wonder the retailer is ahead of the competition.