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The
company's shares, which have lost 24 percent in the past six
months, jumped 11.3 percent in premarket trading on Tuesday.
The company's revenue rose 0.8 percent in the second quarter
ended Aug. 1, surprising analysts who expected a fall of 2
percent on average.
Best Buy has cut jobs, closed stores and streamlined its
management structure in an effort to boost profit and margins
and compete better with online and big-box retailers.
Improving job markets and low fuel prices has boosted consumer
spending on big-ticket items such as TVs and other appliances.
Best Buy has exited operations in China and consolidated those
in Canada, leaving it largely dependent on U.S. sales.
U.S. sales rose for the fourth straight quarter, accounting for
nearly 93 percent of total sales.
Same-store sales in the region rose 2.7 percent, helped by
demand for appliances and higher mobile prices.
Revenue rose to $8.53 billion in the quarter, compared with the
average analyst estimate of $8.29 billion.
Net income attributable to shareholders rose to $164 million, or
46 cents per share, in the second from $146 million, or 42 cents
per share, a year earlier.
Excluding items Best Buy earned 49 cents per share, beating
analysts' average estimate of 34 cents.
Best Buy's shares were trading at $32.80 before the bell on
Tuesday. Up to Monday's close, the stock had fallen 24 percent
this year.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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