Best Buy beats Street with Q1 profits, sales

Minneapolis – Domestic demand for large-screen TVs and mobile phones helped Best Buy Co Inc. beat Wall Street projections for profits and sales in the first quarter of fiscal 2016. Net earnings fell 72% to $129 million from $461 million a year earlier, largely due to corporate restructuring charges.



Enterprise revenue declined 1% to $8.56 billion, from $8.63 billion. However, domestic revenue increased 1% to $7.89 billion, from $7.78 billion. Enterprise and domestic same-store sales both increased 0.6%, aided by enterprise billing. Comparable online sales (domestic only) improved 5.3%.



“While merchandising, marketing and operational execution were the tactical drivers of our better-than-expected first quarter financial results, strategically, we believe the cumulative impact of the progress we have made to improve our multichannel customer experience is what has allowed us to consistently outperform the market,” said Hubert Joly, president and CEO of Best Buy. “We have made real progress and it is showing up in our results.”



During the second quarter of fiscal 2016, Best Buy expects flat to positive low-single digit revenue growth rate in both its domestic and enterprise segments.