Results missed expectations and the company lowered its full year earnings guidance as well. Shares fell more than 6 per cent in morning trading.
"Results in the second quarter and our outlook reflect continued macro challenges to overall consumer spending and lower consumer electronics industry sales," said CEO Brian Dunn. But he said the company is "well positioned" for the holiday season.
The lack of a major smartphone introduction also hurt results, Best Buy said.
Net income fell to $177 million, or 47 cents per share, for the three months ended Aug. 27, down from $254 million or 60 cents per share last year. Analysts expected earnings of 52 cents per share, according to a survey by FactSet.
Revenue edged up to $11.35 billion from $11.34 billion. But analysts expected $11.47 billion.
Revenue in stores open at least one year fell 2.8 per cent during the quarter. The measure is a key gauge of a retailer's financial health because it excludes stores that open or close during the year.
Best Buy said sales of tablet computers, appliances and e-book readers outperformed other categories. TV and video game sales were weaker.
Best Buy, based in Minneapolis, now predicts 2011 earnings of $3.35 to $3.65 per share. That includes a benefit from share repurchases of 20 cents to 25 cents per share. Excluding that, the outlook is lower than its previous guidance of net income of $3.30 to $3.55 per share.
Analysts, who typically exclude one-time items from their estimates, expect earnings of $3.45 per share.
The company reaffirmed revenue guidance of $51 billion to $51.2 billion. Analysts predict revenue of $51.99 billion.
Shares fell $1.52, or 6.1 per cent to $23.44 in morning trading, approaching their 52-week low of $23 reached last week. They had traded as high as $45.63 late last November.