Best Buy Co. Inc. (NYSE: BBY) released its fiscal second-quarter financial results before the markets opened on Thursday. The big-box electronics retailer said that it had $1.08 in earnings per share (EPS) and $9.54 billion in revenue, which compares with consensus estimates of $0.99 in EPS and $9.56 billion in revenue. The same period of last year reportedly had EPS of $0.91 on $9.38 billion in revenue.
During the latest quarter, enterprise comparable sales increased 1.6% year over year, compared with an increase of 6.2% last year. This consists of domestic comparable sales increasing 1.9%, domestic comparable online sales increasing 17.3% and international comparable sales decreasing 1.9%.
The largest comparable sales growth drivers were appliances, tablets, headphones and services. These drivers were partially offset by declines in the gaming and home theater categories.
Domestic revenue totaled $8.82 billion, with online revenue making up about $1.42 billion of these sales. International revenues were $715 million.
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $1.00 to $1.05, enterprise revenue between $9.65 billion and $9.75 billion, and comparable sales growth of 0.5% to 1.5%. Consensus estimates are calling for $0.94 in EPS and $9.79 billion in revenue for the quarter.
Corie Barry, Best Buy CEO, commented:
For the second quarter, we are reporting comparable sales growth of 1.6% on top of a very strong 6.2% last year. We also delivered improved profitability driven by gross profit rate expansion and continued disciplined expense management, demonstrating the culture we have built around driving cost reductions and efficiencies to help fund investments. I would like to thank all of our associates for delivering strong first half results.
Shares of Best Buy traded early Thursday at $63.64, or down more than 7%, in a 52-week range of $47.72 to $81.66. The consensus price target is $76.73.
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