PRIVATE LABEL, SERVICES FUEL BEST BUY'S PROFITS.

HFN: The Weekly Newspaper for the Home Furnishing Network, June, 2005 by Rudnick, Michael

Byline: Michael Rudnick

NEW YORK-Improved margins on a growing private-label program and revenues garnered from an expanding in-home services initiative were just a few factors that helped Best Buy nearly double its earnings in the most recent quarter.

The big-box retailer reported net earnings for the first quarter ended May 28 of $170 million, an 85 percent increase over the $92 million for the same period last year.

During the company's recent earnings call, Darren Jackson, Best Buy's executive vice president and chief financial officer, partly attributed the gain to a 160-basis-point, gross-profit increase to 25.5 percent on "a less promotional environment, and benefits of our sourcing, private-label, price optimization and service...