NEW YORK (MarketWatch) — Best Buy Co. /quotes/comstock/13*!bby/quotes/nls/bby (BBY 39.33, -1.08, -2.67%) , the largest U.S. electronics chain, said Tuesday that its second-quarter profit dropped to $158 million, or 37 cents a share, from $202 million, or 48 cents a share, a year earlier. Revenue in the quarter ended Aug. 29 rose to $11 billion from $9.8 billion. Analysts, on average, estimated that the Minneapolis-based retailer would earn 41 cents a share on sales of $10.81 billion, according to FactSet. Best Buy raised the bottom end of its full-year forecast to profit excluding items of $2.70 to $3 a share after first-half sales moderately beat the company’s projections. Analysts surveyed by FactSet estimated profit of $2.88 a share for the year.
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CINCINNATI, Sept. 15 /PRNewswire-FirstCall/ — The Kroger Co. (NYSE: KR – News) today reported identical supermarket sales increased 2.6% without fuel in the second quarter of fiscal 2009 ended August 15, 2009, compared with the same period last year.
Total sales, including fuel, in the second quarter were $17.7 billion compared with $18.1 billion for the same period last year. Excluding fuel sales, total sales increased 3.5% over the prior year.
Net earnings totaled $254.4 million, or $0.39 per diluted share, for the second quarter, compared with net earnings of $276.5 million, or $0.42 per diluted share, in the same period last year.
“We remain confident in our strategy. The number of loyal households we serve and the number of items they are buying in our stores grew during the quarter. As a result, we experienced exceptional tonnage growth,” said David B. Dillon, Kroger’s chairman and chief executive officer. “Kroger’s customer-focused strategy is generating and will continue to generate long-term value for our shareholders.”
Details of Second Quarter Results
Including Kroger’s retail fuel operations, FIFO gross margin (Table 1) was 23.11% of sales, an increase of 59 basis points compared to the second quarter last year. Excluding retail fuel operations, FIFO gross margin decreased 60 basis points. Supermarket selling gross margin on non-fuel sales decreased 88 basis points.
The Company recorded a $14.7 million LIFO charge during the quarter, a decrease of $31.5 million from the prior year. Excluding retail fuel sales, the LIFO charge decreased 21 basis points as a percent of sales compared to the prior year.
Including Kroger’s retail fuel operations, operating, general, and administrative (OG&A) costs were 17.41% of sales, an increase of 81 basis points compared to the second quarter last year. Excluding retail fuel operations, the OG&A rate decreased 7 basis points relative to the same period last year as a result of strong cost controls.
Financial Strategy…….
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Adobe Systems Inc. on Tuesday reported third quarter net income of $136 million, or 26 cents a share, compared to $191.6 million, or 35 cents a share in the same period last year.
San Jose-based Adobe (NASDAQ:ADBE) had revenue of $697.5 million, compared to the year-ago quarter’s $887.3 million.
“We are pleased with the solid revenue and earnings results we were able to deliver in Q3,” said Shantanu Narayen, president and CEO of Adobe. “Our focus remains on driving growth in our core businesses, as well as investing in promising new opportunities.”
Excluding items, the company would earned $186.1 million, or 35 cents a share, compared non-GAAP income of $269.1 million, or 50 cents a share last year.
Looking ahead, Adobe expects fourth quarter revenue of $690 million to $740 million with earnings of 23 cents to 29 cents a share.
