Best Buy posted better than expected third quarter earnings and sales results as the retailer primed its product assortments for the holiday season.
For the third quarter ended November 2, Best Buy posted net earnings of $293 million, or $1.10 per diluted share, versus $277 million, or 99 cents per diluted share, in the period a year previous. Adjusted diluted earnings per share, excluding one-time charges or benefits, was $1.13, versus 93 cents in the year-earlier quarter.
As for Wall Street, Best Buy topped a MarketBeat-published analyst consensus adjusted diluted earnings per share estimate of $1.03.
Comparable store sales increased by 1.7% in the quarter year over year, with domestic comps up 2% and international comps down 1.9%.
Revenues in the quarter were $9.76 billion versus $9.59 billion in the period in the year before. Operating income was $395 million versus $322 million.
Domestic revenue increased 2.4% in the quarter to $8.96 billion versus the period a year past. Domestic comps grew 2%, contributing to the overall revenue advance, as did revenue from GreatCall, a provider of connected health and personal emergency response services that Best Buy acquired in the third quarter, partially offset by the loss of revenue from recent store closures. Appliances, headphones, tablets, services and computing were the top comp drivers, with gains partially offset by softness in gaming and home theater.
Domestic online revenue was $1.4 billion. Digital comps increased 15% in the quarter year over year primarily due to higher average order values. As a percentage of the company total, online revenue increased to 15.6% from 13.8% in the year-previous quarter.
“Our teams delivered another strong quarter of top- and bottom-line growth,” said Corie Barry, Best Buy CEO. “We are delivering on our purpose to enrich lives through technology by providing customers the products and solutions they want and need, combined with fast and convenient fulfillment. We are excited about our progress and opportunities as we execute on our Building the New Blue strategy, designed to develop deeper relationships with our customers and uniquely position us over the long term.”
She added, “In the near term, we are excited about our holiday plans. Our teams have once again put together a best-in-class assortment, prepared an amazing set of deals and ensured we have great inventory availability. Customers ordering online will get free next-day delivery on thousands of items all season long with no membership or minimum purchase required. They can also choose to pick up their products in a store within an hour of placing their order.”