Best Buy beats Street in electrifying Q2

Minneapolis – For the second quarter in a row, Best Buy Co. Inc. beat Wall Street expectations for profit and revenue with large-screen TVs and mobile phones providing a major boost to its results.



Best Buy reported net income of $164 million in the second quarter of fiscal 2016, up 12% from $146 million the same period the previous fiscal year.



Profit was aided by a reduction in the cost of goods sold, even as enterprise revenue rose 0.8% to $8.53 billion from $8.46 billion. Major appliances, as well as the aforementioned TVs and mobile phones, drove revenue results. A 4% increase in domestic sales, to $7.88 billion from $7.58 billion, was entirely responsible for enterprise improvement. International sales actually fell 3% to %650 million from $874 million, hindered by the consolidation of Best Buy’s Canadian business and foreign currency fluctuation.



Domestic same-store sales climbed 2.7%. Same-store online sales rose an impressive 17%, as investments in new capabilities continued to drive increased traffic and higher conversion rates.



“We believe these better-than-expected second quarter results are affirmation that our strategy of offering advice, service and convenience at competitive prices is paying off, said Hubert Joly, chairman and CEO of Best Buy. “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.”



During the full fiscal year 2016, Best Buy expects a flat to negative low-single digit revenue growth rate.