Best Buy profit tops estimates, sales miss

Reuters

Best Buy Co Inc reported weaker-than-expected quarterly sales on Tuesday and warned that a slew of investments to win back shoppers could squeeze profits in the near term.

The news overshadowed a better-than-expected profit from the world's largest consumer electronics chain in the first quarter and sent its shares down 4 percent in premarket trading.

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Net earnings from continuing operations fell to $97 million, or 29 cents a share, from $169 million, or 49 cents a share a year earlier. Excluding restructuring and other charges but including Europe, it earned 36 cents a share, beating the analysts average estimate of 25 cents a share, according to Thomson Reuters I/B/E/S.

(The story corrects third paragraph to include Europe in ex-items figure.)

(Reporting By Dhanya Skariachan; Editing by Maureen Bavdek)