Best Buy, Circuit City Top Forecasts

Best Buy Co. and Circuit City Stores Inc., the largest U.S. electronics retailers, posted higher fiscal third-quarter profits as brisk sales of video games, digital televisions and DVDs helped boost results.

Minneapolis-based Best Buy said fiscal third-quarter profit rose 40% as the No.1 U.S. consumer-electronics chain increased its market share of digital products such as cameras and big-screen TVs.

Best Buy said net income for the quarter ended Dec. 1 rose to $80 million, or 37 cents a share, from $57 million, or 27 cents, a year earlier. Revenue rose 27%, to $4.76 billion, as same-store sales rose 1.6%.

Circuit City, which ranks No.2 in the sector, managed to reverse a year-earlier loss for the quarter ended Nov. 30, reporting net income at its retail stores of $21.1 million, or 10 cents a share.

Circuit City, which has been losing market share to bigger Best Buy, had a year-earlier net loss of $64.4 million, or 32 cents a share.

The Richmond, Va.-based retailer said revenue fell 2%, to $2.28 billion, as sales at stores open at least a year dropped 4%. Excluding appliances, same-store sales were down 2%.

On the New York Stock Exchange, Best Buy jumped $3.55, or 5.1%, to close at $72.55 and Circuit City rose 16 cents to $23.86.