Surprise recovery reported by Best Buy

The latest financial results revealed by Best Buy have showed that the company has bounced back, with better-than-expected earnings announced by the firm.

It was confirmed that despite the fact sales shrunk during the second quarter of the year, it still made a profit of $266 million (£170 million).

New boss Herbert Joly has instigated a wide cost-cutting programme since taking over the firm and this has helped it to secure a firmer financial footing.

In a statement, he said: "In November at our investor meeting, we talked about the two problems we had to solve: declining comparable store sales and declining operating margins."

Mr Joly added that "measurable" progress has been made by the firm in the last few months.

When the New York Stock Exchange opens later today (August 21st), shares in Best Buy will be trading for 34.80.

This is just slightly behind the 52-week high for the firm's stocks, so a new yearly record could be reached by the company today.

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