Best Buy Net Climbs in Q2
Posted on August 25, 2015 by
MINNEAPOLIS-A positive performance from its U.S. segment helped fuel profit growth for Best Buy in its fiscal second quarter, which ended on Aug. 1.
Net income in the quarter totaled $164 million, up 12.3 percent from the second quarter of last year. U.S. segment revenue was ahead by 3.9 percent over last year, reaching $7.9 billion and including a pickup of 3.8 percent in same-store sales. Overall revenue edged up 0.8 percent to $8.5 billion.
Major appliances was one of the categories that helped drive the U.S. business, along with large-screen televisions and mobile phones, according to Hubert Joly, Best Buy’s chairman and CEO. Overall online comparable sales were up 17 percent.
Gross margin also helped the bottom line with a gain of 120 basis points to 24.6 percent. Selling, general and administrative expenses increased by 3.6 percent in dollars and 50 basis points as a percentage of sales.
“As we look forward, while we are cognizant of the recent financial market turbulence, we believe the combination of an opportunity-rich environment and the strength of our competitive advantages leads us to have a positive outlook about our future prospects, starting with the important back-to-school third quarter,” Joly said.
Last year, according to HFN market research, Best Buy posted home furnishings sales of $343 million, down 86.3 percent from 2013.