For the first quarter ended May 3, Best Buy Co. posted net earnings of $461 million, or $1.31 per diluted share, versus a net loss of $81 million, or 24 cents per diluted share, in the year-ago period. Adjusted earnings per diluted share were 33 cents versus 32 cents in the 2013 quarter.
EPS beat a 20-cents average analyst estimate published by Thomson Reuters,
Revenues were $9.04 billion versus $9.35 billion in last year’s period.
Best Buy noted that domestic revenue of $7.78 billion down 2.1% compared with last year’s quarter. The decline primarily resulted from a comparable sales decline of 1.3% and a revenue decline of $63 million, or 80 basis points, due to the less favorable ongoing economics of a new credit card agreement. The declines were offset partially by $16 million, or 20 basis points, of non-recurring financial benefits associated with the transitional economics of the credit card agreement, the company pointed out.
Domestic online revenue was $639 million and comparable online sales gained 29.2% due to better inventory availability made possible by the chain-wide rollout of ship-from-store capability that was completed in January as well as a higher average order value, increased traffic driven by greater investment in online digital marketing and a higher number of online orders being placed from Best Buy retail stores.
As for merchandising categories, better results in computing, gaming and appliances were more than offset by declines in other categories including tablets, services and home theater.