Best Buy Q2 Builds On Domestic Strength

For the second quarter, Best Buy’s business in the United States overcame international weakness to deliver company comparable store sales and earnings gains.

Best Buy posted net earnings of $238 million, or 89 cents per diluted share, in the second quarter compared with $244 million, or 86 cents per diluted share, in the year-before quarter. Adjusted operating diluted earnings per share were $1.08 versus 91 cents in the period a year previous.

Adjusted earnings per diluted share beat a Zacks Investment Research analyst consensus estimate of 99 cents.

Comparable sales advanced 1.6% in the quarter year over year, with comps in the company’s domestic segment up 1.9% and those in the international segment down 1.9%. Domestic online comps grew 17.3%.

In the second quarter, Best Buy posted revenue of $9.54 billion versus $9.38 billion in the year-earlier period. Revenue in the domestic segment was $8.82 billion versus $8.64 billion, in the quarter a year prior. Operating income was $313 million versus $335 million in the year-past quarter.

“For the second quarter, we are reporting comparable sales growth of 1.6% on top of a very strong 6.2% last year,” said Corie Barry, Best Buy CEO. “We also delivered improved profitability driven by gross profit rate expansion and continued disciplined expense management, demonstrating the culture we have built around driving cost reductions and efficiencies to help fund investments. I would like to thank all of our associates for delivering strong first half results. During the quarter, we continued to make progress on our Building the New Blue strategy and our purpose to enrich lives through technology. We expanded our commitment to the health and wellness category through expanded assortment and a second acquisition, grew our Total Tech Support membership, added In-Home Advisors and continued to transform our supply chain to improve our speed of delivery to customers. We are excited about our strategic business opportunities and look forward to updating the market on the progress of our strategy during our investor update on September 25.”

In May, Best Buy revealed it had acquired Critical Signal Technologies, which provides personal emergency response systems and health monitoring services for seniors.