Best Buy Q4 Comps, Earnings Grow

Fourth quarter comparable store sales at Best Buy were up 3% as the home electronics superstore reported better-than-expected earnings for the three month period ended February 2.

Domestic revenue for the fourth quarter was $13.5 billion, down 3.5% from the fourth quarter of the previous year. Company officials said the revenue decrease was largely due to the extra week totaling approximately $715 million in the fourth quarter of the prior year. Also factoring in the lower sales was lost revenue from 257 Best Buy Mobile and 12 large format stores.

In addition, domestic online revenue was $2.96 billion, an increase of 9.3% on a comparable basis primarily due to higher conversion rates and increased traffic.

Enterprise revenue, which accounts for all company segments, was $14.8 billion for the fourth quarter, down from revenue of $15.4 billion for the previous fiscal year. Comparable sales growth was up 3%.

Fourth quarter net earnings were $735 million, or $2.69 per diluted share, compared with net earnings of $364 million, or $1.23 per diluted share, for the fourth quarter the prior fiscal year.

For the full year, enterprise revenue was $42.9 billion, up from revenue of $42.2 billion in the prior fiscal year. Enterprise comparable sales were up 4.8%.

The company’s fiscal year 2020 guidance includes enterprise revenue of between $42.9 billion and $43.9 billion, with enterprise comparable sales growth of between 0.5% and 2.5%.