Best Buy Profit Tumbles

Best Buy's third quarter profit plunged 77 percent as the economic slowdown finally caught up with the nation's largest consumer electronics retailer.

The Minneapolis company, which had given Richmond-based Circuit City headaches for years, now finds itself taking similar steps to cope with slowing sales. It is offering buyout packages to corporate employees and slashing spending for 2009. Wall Street cheered the cost cutting measures, sending Best Buy shares up, $3.55, or 15 percent, $27 in early trading.

"The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced," said Brad Anderson, vice chairman and CEO of Best Buy, in statement. "We believe that there has been a dramatic and potentially long-lasting change in consumer behavior as people adjust to the new realities of the marketplace.

-- Michael S. Rosenwald