Homebound Consumers Fuel Best Buy Third Quarter Sales Surge

Best Buy reported a banner third quarter, with net sales and comps surging as consumers continued to purchase a diverse range of home products for their homebound lifestyles.

In the third quarter, net earnings were $391 million, or $1.48 per diluted share, versus $293 million, or $1.10 per diluted share, in the period a year previous.

Earnings per diluted share adjusted to exclude one-time events were $2.06 versus $1.13 in the year-before quarter, the company noted. Best Buy exceeded a MarketBeat-published analyst consensus for diluted earnings per share by 36 cents.

Comparable sales in the period were up 23% year over year with domestic comps up 22.6% and international comps up 27.3%. Domestic comp online sales gained 173.7%.

Company revenues were $11.85 billion and domestic segment revenues were $10.85 billion in the quarter, versus $9.76 billion and $8.96 billion, respectively, in the period a year earlier. Operating income was $561 million versus $395 million and adjusted operating income was $728 million versus $406 million in the year-before quarter.

The company also reported restructuring charges of $111 million in the quarter primarily related to charges associated with the company’s decision this quarter to exit operations in Mexico and actions to better align its organizational structure with its strategic focus.

Corie Barry, Best Buy CEO, said, “Today, we are once again reporting strong quarterly results in the midst of unprecedented times. Our comparable sales grew a remarkable 23% as we leveraged our unique capabilities, including our supply chain expertise, flexible store operating model and ability to shift quickly to digital, to meet what is clearly elevated demand for products that help customers work, learn, cook, entertain and connect in their homes. The current environment has underscored our purpose to enrich lives through technology, and the capabilities we are flexing and strengthening now will benefit us going forward as we execute our strategy.”