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Best Buy Co., Inc. (BBY) Tops Q2 EPS by 13c; Comps Fell 2.7%

August 26, 2014 7:00 AM EDT

Best Buy Co., Inc. (NYSE: BBY) reported Q2 EPS of $0.44, $0.13 better than the analyst estimate of $0.31. Revenue for the quarter came in at $8.9 billion versus the consensus estimate of $8.99 billion.

Comps fell 2.7 percent.

Hubert Joly, Best Buy president and CEO, commented, "In the second quarter, we delivered $8.9 billion in revenue and $0.44 in non-GAAP diluted earnings per share versus $0.32 last year. The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%4, in line with our Domestic comparable sales decline of 2.0%.”

Joly continued, “Like other retailers and as reflected in this quarter’s performance, we continued to see a shift in consumer behavior: consumers are increasingly researching and buying online. As a result, traffic to our brick and mortar stores continued to decline, yet our in-store conversion and online traffic continued to increase due to the execution of our Renew Blue strategy which is in direct alignment with this shift. Our Renew Blue strategy is designed to (1) grow our online business; (2) enhance our in-store customer experience; and (3) leverage our multi-channel capabilities; all to deliver to our customers great advice, service and convenience at competitive prices in the channel they want to be served.

Domestic Revenue

Domestic revenue of $7.59 billion declined 2.4% versus last year. This decline was primarily driven by (1) a comparable sales decline of 2.0%; and (2) a revenue decline of $20 million, or 25 basis points, due to the less favorable economics of the new credit card agreement.

Domestic online revenue was $581 million and comparable online sales increased 22.0% due to (1) substantially improved inventory availability made possible by the chain-wide rollout of our ship-from-store capability that was completed in January 2014; (2) a higher average order value; and (3) increased traffic driven by greater investment in online digital marketing.

For earnings history and earnings-related data on Best Buy Co., Inc. (BBY) click here.



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