Best Buy Says Profit Will Beat Expectations

Best Buy Co. said fiscal fourth-quarter profit will beat forecasts after strong demand for wireless telephones and other digital devices pushed December sales above expectations. The nation’s largest consumer electronics retailer said it expects to earn 72 cents a share in its quarter ending in February. The average estimate of analysts polled by First Call/Thomson Financial is 69 cents. Sales at stores open at least a year increased 9.8% in December, the Eden Prairie, Minn.-based company said. Digital products accounted for 10% of total sales last month, more than double the figure for December 1998. Demand is expected to remain strong, boosting profit next year, the company said. “It is definitely the real precursor to major expansion in our profitability next year,” said Chairman and Chief Executive Richard Schulze on a conference call. Best Buy shares closed off 38 cents at $57 on the Big Board.