Best Buy Net Slips in Third Quarter

MINNEAPOLIS--A drop in revenue and a slight increase in expenses pushed Best Buy's net income down 4.4 percent in its third quarter, to $217 million.

Revenue declined 1.1 percent to $11.9 billion in the quarter, which ended Nov. 27.  This falloff included a 3.3 percent drop in same-store sales, including a decrease of five percent for the retailer's U.S. stores. Brian Dunn, Best Buy's chief executive officer, said third-quarter sales came in at less than expected.

Selling, general and administrative expenses rose 1.2 percent on a dollar basis and gained 50 basis points as a percentage of revenue, to 21.8 percent.

Gross margin did pick up 60 basis points in the quarter to 25.1 percent, which somewhat offset the revenue decrease and SG&A increase. Best Buy said the margin improvement was due largely to the continued growth of Best Buy Mobile, its mobile-phone shopping feature.

Jim Muehlbauer, executive vice president of finance and chief financial officer, said Best Buy expects "a significant amount of business" during the holiday selling season, but "we don't have complete visibility to how customers will behave over the next several weeks."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.