Best Buy Beats Analyst Estimate Though Sales Slip

For the second quarter ended August 3, Best Buy Co. reported that net earnings were $266 million, or 77 per diluted share, versus $12 million, or four cents per diluted share, in the period a year earlier. Adjusted earnings per share came in at 32 cents per share versus 16 cents in the 2012 frame.

Zacks Consensus Estimate of Wall Street analysts called for earnings of 12 cents per share.

Comparable store sales slipped 0.6%. Comparable store sales in the domestic segment included a decline of 0.4% while comparable online sales gained 10.5%, the company maintained. International comparable store sales decreased by 1.8%.

Overall, revenues came in at $9.3 million versus $9.34 billion in the 2012 second quarter.

Revenue from domestic operations was $7.81 billion, an increase of 0.1% over the prior year. The retailer stated that the gain was primarily driven by the revenue from 57 net new Best Buy Mobile stand-alone stores that opened predominantly in third and fourth quarters of last year, partially offset by the comparable store sales decline. Short-term disruptions caused by the retail deployment of the Samsung Experience Shops, Windows Stores and floor space optimization hurt comps, as did continuing rationalization of non-core businesses, Best Buy noted. Excluding those factors, the retailer added, domestic comps would have been flat to slightly positive.

Domestic Internet revenue was $477 million with the 10.5% comp gain coming from increased traffic and higher average order value.

From the merchandising perspective, domestic declines in gaming and digital imaging partially offset sales growth in mobile phones and appliances, according to the company.