Best Buy Net Climbs in Q2

U.S. segment revenue rises 3.9 percent
August 25, 2015David Gill

Best Buy Posts Q1 LossMINNEAPOLIS-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.

David GillDavid Gill | Senior Editor

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.


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