Third-quarter sales at Best Buy grew driven by new store openings and a modest growth in comparable store sales.
Net sales for the quarter ended November 28, were $12 billion, an increase of 5% from the comparable quarter the previous year. The revenue increase reflected the addition of 127 net new stores in the past 12 months and a comparable store sales gain of 1.7%. Net earnings for the quarter were $227 million, up from net income of $52 million for the same period the previous year.
The company’s domestic segment’s fiscal third quarter revenue totaled $8.9 billion, an increase of 9% versus the prior year period. This revenue increase was driven by a comparable store sales gain of 4.6% and the net addition of 87 stores in the past 12 months. The comparable store sales gain was driven by increased traffic and an improvement in average ticket. The company noted that traffic increased over the prior year period for the second consecutive quarter.
Comparable store sales gains in notebook computers, flat panel televisions, mobile phones and appliances were partially offset by decreases in gaming, movies and music. The company noted that domestic comparable store sales improved sequentially each month of the fiscal quarter, finishing with an 8.4% increase in the fiscal month of November as the company experienced low-double digit comparable store sales gains on Friday and Saturday of the Thanksgiving holiday shopping weekend. Furthermore, the company reported that domestic online sales for the fiscal third quarter increased more than 20% versus the prior year period on higher website traffic and average ticket.