Best Buy swings to profit, shows signs of turnaround

Best Buy (NYSE:BBY) is showing signs of a turnaround as earnings beat expectations and online sales surged for the most recent quarter.

Executives said the company's recent shift to make stores capable of distributing orders from online customers had contributed to a 29 percent gain in online sales in the quarter. And the company will soon be adding returned and open box items to the online offerings.

The electronics seller said its net income was $461 million, a big turnaround from a loss of $81 million a year earlier. Total revenue fell 3.3 percent to $9.04 billion. Comparable sales at Best Buy's U.S. stores fell 1.3 percent during the February to early May period, slightly up from the 1.2 percent drop a year ago.

Best Buy is struggling under increased competition from online stores, such as Amazon.com (NASDAQ: AMZN) and discounters like Walmart (NYSE: WMT). The company has been trying to boost profit and attract new customers by revamping merchandise, training employees and cutting costs.

To boost its in-store retail offerings, the company recently announced it has teamed up with Sony and Samsung to create new shop-in-shop spaces inside retail stores. The 350 Sony and 500 Samsung spaces will be designed to better promote the tech brands' home theater products, gaming systems and high-definition televisions.

For more:
-See this Best Buy press release

Related stories:
Samsung, Best Buy team up to create 'store-in-store' kiosks
Sony shutters 20 U.S. retail stores, slashes 1,000 jobs
Best Buy reports dismal holiday sales, shares tank
Best Buy Canada lays off 950 full-time employees
Best Buy returns to profit, 2,000 manager positions could be slashed

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