Best Buy Co., Inc. (NYSE: BBY) reported Q2 EPS of $0.32, $0.20 better than the analyst estimate of $0.12. Revenue for the quarter came in at $9.30 billion versus the consensus estimate of $9.13 billion.

Total comps fell 0.6 percent. Domestic comps down 0.4 percent, online comps up 10.5 percent, international comps slipped 1.8 percent.

Best Buy CFO Sharon McCollam noted two factors that will impact Q3 and Q4 results: The first is a temporary increase in our mobile warranty costs that is expected to continue through Q1 FY15, commented McCollam. This temporary increase is related to higher claims frequency on our legacy Geek Squad Protection programs that will expire or be operationally restructured over the next several quarters. The second is a longer term change in the economics of our private-label credit card program that is being sold by Capital One to Citibank in the third quarter of this year. This impact is due to the expiration of our previous agreement with Capital One which offered Best Buy substantially better financial terms than what is commercially available in the market today due to changes in both the regulatory environment and general consumer credit market overall.

McCollam continued, we are providing here today our latest quarterly estimates of the year-over-year basis point impact of these factors to the total company operating income rate. These estimates reflect the sum of the three P&L drivers we just discussed: (1) the negative impact of the pricing and SG&A investments; (2) the increased operational costs; and (3) the positive impact of the Renew Blue cost savings. By quarter, these estimates are as follows: (1) negative 90 to 110 basis points in Q3 FY14; (2) negative 40 to 70 basis points in Q4 FY14; (3) negative 60 to 90 basis points in Q1 FY15; (4) negative 70 to 100 basis points in Q2 FY15; and (5) negative 30 to 60 basis points in Q3 FY15. Again, these estimates only pertain to these specific P&L drivers and should not be used or interpreted in isolation as a calculated projection of our expected year-over-year change in the total company operating income rate for the quarters discussed. As we have seen in the last three quarters, our core business performance is stabilizing and our product mix and cost containment initiatives (above and beyond our Renew Blue cost savings) have been stronger than expected. As such, we expect that through continued improvements in our core business performance, we will be able to offset some or all of these impacts.

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