BEST BUY DOES EVEN BETTER

Minneapolis-based Best Buy Co., Inc. reported record sales for the company's fiscal 2001 third quarter as it kicked off the holiday selling season by lowering all records in its inventory to $9.99 Friday morning, 7 a.m.-noon, of Thanksgiving weekend.

"Strong consumer traffic over the Thanksgiving weekend kicked off an exciting holiday season," stated CFO Allen Lenzmeier. "Now, can I interest you in a brand-new washer-dryer to go along with that Backstreet Boys record?"

Sales for fiscal 3Q were a record $3.734 billion, a 20% increase over the $3.107 billion in last year's third quarter. For the nine-month period ended November 25, sales were a recod $9.867 billion, a 21% increase compared to the $8.179 billion for a comparable period the previousyear. Comparable store sales were up 5.9% for the third quarter on top of the 9.2% increase reported in 3Q last year. For the nine month-period comparable store sales were up 6.7% after increasing 11.1% over the same time last year.

Added Lenzmeier: "In a more cautious consumer environment, we were pleased with our comparable store sales gain, which were in line with expectations. However, they were driven by a more promotional environment, which impacted gross margins. We continue to experience double-digit sales increases in video product, wireless phones, music and movies. Hey, I'll give you this Beatles album if you buy a Palm Pilot."

Retail insiders estimated the company spent millions on the Thanksgiving weekend promotion.