Best Buy’s Profit Increases Even as It Extends Sales Slump

Best Buy Co. reported better-than-expected profitability in the first quarter, even as sales woes deepened and consumers remained on the sidelines with their electronics purchases.

The retailer kept its guidance intact and said it expects to deliver profitability at the high end of its guidance, thanks to a higher profit rate in its membership and services offerings. The company said comparable sales decreased 6.1% during the three months ended April 29, worse than the 4.99% drop analysts expected.