Best Buy (BBY) Posts Q1 adj.-EPS of 32c; Comps Down 1.1%
Best Buy Co., Inc. (NYSE: BBY) reported Q1 adjusted EPS of $0.33, versus the analyst estimate of $0.25. Revenue for the quarter came in at $9.38 billion versus the consensus estimate of $10.64 billion.
Comps down 1.1 percent.
Hubert Joly, Best Buy president and CEO, commented, "In the first quarter, we continued to make substantial progress on our Renew Blue priorities. This progress included (1) driving a 16% increase in Domestic comparable online sales; (2) improving our customer Net Promoter Score by over 300 basis points over the last five months; (3) reaching an agreement with Samsung to establish Samsung Experience Shops in our retail stores and beginning their roll out; (4) negotiating overall rent reductions for a number of stores and closing one large format store; and (5) eliminating $175 million in annualized SG&A and supply chain costs in addition to $150 million eliminated last quarter. In addition, we are pleased that we were able to reach a definitive agreement to sell our 50% interest in our European business.”
Best Buy isn't providing guidance for Q214. CFO Sharon McCollam commented, "...disruptions caused by the physical deployment of the Samsung Experience Shops and the optimization of our retail floor space are expected to have operational impacts during the second quarter. We also expect to see a greater negative impact from our Renew Blue capital and SG&A investments in the second quarter in the areas of (1) online; (2) mobile; (3) the multi-channel customer experience; and (4) the replatforming of bestbuy.com for which financial benefits are not expected to be realized until fiscal 2015 and beyond."
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