I remember 15 years ago, I rarely felt more satisfied than when I sold an unwanted CD for a decent price (still looking for someone to take that Spin Doctors album off my hands). It was also a rush to score a CD that was new (and cheap) to me, even if it had been dismissed by its former owner. That business may have suffered a precipitous fall, the trade of used goods continues to thrive among the gaming community.

Gamestop (GME) makes much of its business (27% in the last quarter, to be exact) in the used trade, and it makes good business sense. Once a consumer buys a title from, say, Electronic Arts (ERTS), the publisher has made its money. The profit from used discs goes to the seller and the middle man (which happens to be Gamestop). While used games comprised just 27% of Gamestop sales last quarter, they made up 48% of the company's gross profit.

Continue reading Best Buy to Start Dealing in Used Games

Best Buy to Start Dealing in Used Games originally appeared on BloggingStocks on Fri, 18 Jun 2010 12:20:00 EST. Please see our terms for use of feeds.

Early Tuesday morning, Best Buy (BBY) announced that its first-quarter profit increased to $155 million from $153 million a year ago. While the overall profit was slightly higher, the per-share results of 36 cents matched those from a year ago. These results fell 14 cents short of the consensus estimate.

The electronics retailer also maintained its full-year earnings of $3.45 to $3.60 per share, which surrounds the $3.50 per share expected by the Street.

Continue reading Best Buy's Q1 Profit Misses Expectations

Best Buy's Q1 Profit Misses Expectations originally appeared on BloggingStocks on Tue, 15 Jun 2010 11:00:00 EST. Please see our terms for use of feeds.

Best Buy (NYSE: BBY) may be the world's largest electronics retailer, but it realizes that it faces a huge threat to a hefty chunk of its business. Apple (NASDAQ: AAPL) is moving plenty of movies and other soon-to-be former DVD fare through iTunes, staking a claim on a business that once belonged to Best Buy. The big box store is getting ready to fight back (finally?).

Using technology it's licensing from Sonic Solutions (NASDAQ: SNIC), Best Buy is opening an online store for movies and television shows. Best Buy CEO Brian Dunn says this move will expand the company's presence in services and will bolster company loyalty. That's the press release version, of course. The reality is that Best Buy needed to do something to protect this portion of its revenue and probably should have made the move several years ago.

Continue reading Best Buy follows Amazon into the clouds

Best Buy follows Amazon into the clouds originally appeared on BloggingStocks on Wed, 04 Nov 2009 08:40:00 EST. Please see our terms for use of feeds.

Continue reading R.I.P., Circuit City

R.I.P., Circuit City originally appeared on BloggingStocks on Mon, 02 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.

Will Circuit City disappear? originally appeared on BloggingStocks on Fri, 09 Jan 2009 13:30:00 EST. Please see our terms for use of feeds.

Best Buy (NYSE: BBY) was selected by Standard & Poor's The Outlook at its "Stock of the Week," a pick that is chosen from among those stocks that earn the coveted 5-star strong buy ranking.

The Outlook notes that it expects the retailer "to benefit from strength in consumer-electronics spending and an ability to outmaneuver competitors." Here's the reasoning behind making Best Buy, American's largest specialty retailer of consumer electronics, a "best buy."

S&P states, "We think that the healthy consumer-electronics cycle will continue to propel sales and earnings growth despite an expected slowdown in consumer spending. We also think that aggressive expansion and a continued focus on service levels will allow Best Buy to increase overall market share and build loyalty with consumers."

As of March, the retailer operated 869 Best Buy stores (822 in the U.S. and 47 in Canada), and, says S&P, "While the market remains fairly fragmented, the top three players have a nearly 50% share."

Best Buy, the service notes, leads the way with an approximately 25% share, followed by Wal-Mart, Stores (NYSE: WMT) with 15%, and Circuit City Stores (NYSE: CC) with 9%. Says S&P, "Competition is fierce, and we believe that retailers who differentiate themselves, either through service, marketing, or product mix, will benefit."

Continue reading S&P makes Best Buy a 'Best Buy'

S&P makes Best Buy a 'Best Buy' originally appeared on BloggingStocks on Wed, 23 May 2007 11:59:00 EST. Please see our terms for use of feeds.