Best Buy Co. Inc (NYSE: BBY) has just released its 2017 fiscal second quarter report, adjusting diluted earnings per share to $0.57 and posting $8.53 billion in revenue. Over the same period last year, the company reported an EPS of $0.49 on the same revenue. These results compare evenly with the Thomson Reuters consensus EPS estimates of $0.43 and $8.4 billion in revenue.
Similarly, enterprise level same-store sales increased 0.8 percent YOY in the quarter after showing growth of 3.8 percent through the second quarter of last year. In the United States alone, same-store sales rose the same with comparable online sales increasing by as much as 24 percent (which actually beat the company’s flat target) to $835 million. Online sales now account for more than 10 percent of the company’s overall revenue.
As you might expect, these gains mostly came through in sales of consumer electronics as well as appliances both of which showed same-store sales of 4 percent and 8.2 percent, respectively. Entertainment product sales fell by 18 percent, however, as digital media continues to thrive (and pushing down revenue on physical music and movie discs).
Best Buy Chairman and CEO, Hubert Joly commented, in the company’s press release, on Monday morning, “Our teams delivered a strong quarter, with better-than-expected revenue and profitability in both our Domestic and International businesses. We are encouraged by the quality of our execution, the momentum in our business and the strength of our first half financial results. We are excited by our mission to help customers live their lives and pursue their passions with the help of technology and the growth opportunities this mission creates for us. I want to thank our associates across the company for their focus and work to deliver every day on this mission.”
Similarly, Best Buy Chief Financial Officer Corie Barry notes, “We anticipate both Enterprise and Domestic comparable sales growth of approximately 1 percent. We expect International revenue to be approximately flat to down 5% on a reported basis and to be approximately flat on a constant currency basis.”
He also goes on to say, “We continue to expect the slight revenue decline in the first half to be offset by slight growth in the back half and in light of our first half performance, we are now expecting a full year non-GAAP operating income growth rate in the low-single digits versus our previous expectation of approximately flat. This includes lapping the significant periodic profit sharing benefits from our services plan portfolio that we earned in fiscal 2016.”