Home Life Lifts Best Buy Q2

Merchandise for the home helped drive strong Best Buy second quarter results.

Net earnings for the quarter were $432 million, or $1.65 per diluted share, versus $238 million, or 89 cents per diluted share, in the year-earlier period. Diluted earnings per share adjusted for one-time events gained to $1.71 from $1.08 in the fiscal year prior. Best Buy topped a MarketBeat-published analyst consensus second quarter estimate of 98 cents per adjusted diluted share.

Comparable store sales advanced 5.8% year over year, Best Buy stated, while domestic comps increased 5% and domestic comp digital sales increased 242.2%.

Revenues were $9.91 billion versus $9.54 billion in the year-previous quarter. Domestic revenues were $9.13 billion versus $8.82 billion in the period a year past. Operating income was $568 million versus $313 million in the year-before quarter.

“Today, we are reporting strong quarterly results in the midst of unprecedented times,” said Corie Barry, Best Buy CEO. “We are encouraged to see the customer demand for our products and services and are proud of the amazing execution of our teams. However, we have not lost sight of the fact that people continue to suffer, and we extend our sympathy to all those who have lost someone to this virus, are sick with COVID-19 or are facing financial hardship as a result of the pandemic. Enterprise revenue growth was almost 4%, even though our stores were open by appointment only for the first six weeks of the quarter. Products that help people work, learn, connect and cook at home, like computing, appliances and tablets, were the largest drivers of our sales growth for the quarter. Trends across most categories and services improved materially throughout Q2 as we opened our stores more broadly for shopping, especially categories like large appliances and home theater that benefit from more experiential shopping. Specifically, enterprise sales growth was approximately 16% in the last seven weeks of Q2 after we opened our stores and the strength continued into August, with sales up approximately 20% for the first three weeks of Q3. Clearly, we are still operating in a dynamic environment, and much uncertainty remains. At the same time, we are encouraged by our clarity of purpose and our momentum, which have guided and will continue to guide our operating model changes and investments. Our purpose to enrich lives through technology is more relevant than it has ever been, and we are confident regarding our execution, adaptability and the opportunities ahead.”