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Briefly

Best Buy posts strong sales

NEW YORK (AP) — Best Buy posted strong sales of mobile phones, appliances, and smart computing products as it showed in its financial results that store chains can still thrive as shoppers buy more online.

The nation’s largest consumer electronic was also buoyed by stronger consumer confidence in reporting first-quarter revenue and profits that beat Wall Street estimates. Sales at established stores rose 7.1 percent.

Still, Best Buy shares fell nearly 7 percent Thursday as investors were disappointed that the company didn’t raise its full-year financial outlook.

Only a few years ago, naysayers were writing Best Buy’s obituary. But the Minneapolis-based company has surprised investors with its resilience.

Best Buy has improved the store experience, allowing shoppers to test new technology. It’s invested in price matching and offers speedier delivery options.

It’s also been expanding its tech support services, hoping to deepen its relationship with shoppers. That includes a free service in big cities where salespeople visit customers at home to make recommendations on TVs, setup and more. It also just launched a service that costs $199.99 a year that offers unlimited Geek Squad technical support and many other services.

And it’s even joined with Amazon to let the online leader sell its voice-controlled TVs at its stores.

Gap profit misses forecasts

NEW YORK (AP) — Gap Inc. reported a first-quarter profit that missed Wall Street expectations, hurt by a deeper slump in demand for its namesake label. Its shares fell 7 percent in extended trading.

The San Francisco-based chain said that overall sales at established stores rose 1 percent, dragged down by a 4 percent drop at Gap. Old Navy and Banana Republic both saw sales rise 3 percent.

The results underscore how the Gap brand itself is failing to connect with shoppers, even as the company works to overhaul the business. The chain has been shifting its focus to its growing Old Navy and Athleta stores and away from the Gap and Banana Republic brands. Lower-priced Old Navy, in particular, has been a bright spot.

Gap faces the same problems as many other fashion chains as consumers shift their spending away from clothing and more toward experiences. But Gap, in particular, has struggled to differentiate itself from the sea of clothing options from competitors. The company earned $164 million, or 42 cents per share, in the quarter ended May 5. That compares with $143 million, or 36 cents per share, in the year-ago period.

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