For the nine week holiday season ended January 3, Best Buy Co. posted revenues of $11.37 billion, up from $11.13 billion in the period a year earlier, excluding revenue from the Five Star business in China, which the company is selling. Revenue from stores in the United States increased 4.1% to $10.13 billion year over year while comparable sales grew by 2.6%, the company reported.
Comp growth in televisions, mobile phones and computing was significantly offset by declines in tablets as well as lower service revenues, according to the company.
Comparable online revenue in the U.S. increased 13.4% to $1.49 billion with contributions from improved inventory availability made possible by the chain-wide rollout of ship-from-store capability in January 2014, higher conversion rates and increased traffic driven by greater investment in online digital marketing, Best Buy stated.
However, the retailer’s international revenue declined 11.7% to $1.23 billion versus the year earlier, the company noted. The decline resulted from a 700 basis-point negative impact from foreign currency exchange rate fluctuations, a comparable sales decline of 3.6% due to a declining consumer electronics market in Canada and loss of revenue from store closures in Canada.
International comparable sales declines in tablets, gaming and digital imaging offset growth in mobile phones, noted the retailer.