BEST Buy Co Inc reported weak quarterly sales yesterday and warned that a slew of investments to entice shoppers could squeeze profits in the near term.

The news eclipsed its better-than-expected first-quarter profit and sent the world's largest consumer electronics chain down 4 percent in pre-market trading.

Net earnings from continuing operations fell to US$97 million, or 29 cents a share, from US$169 million, or 49 cents a share a year earlier. Excluding restructuring and other charges but including Europe, the retailer earned 36 cents a share, beating the analysts average estimate of 25 cents, according to Thomson Reuters I/B/E/S.

Under CEO Hubert Joly, who took the helm last autumn, it has been matching rivals' online prices, dedicating more in-store space to faster-growing products such as smartphones and tablets, and investing in employee training and revamping stores.