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The U.S. consumer electronics retailer said domestic online
sales rose 10.1 percent in its second quarter. That compared
with 12 percent in the first quarter and 31.2 percent in the
same period a year ago.
The retailer's online performance overshadowed an otherwise
strong quarterly performance, where its sales and profit beat
estimates helped by a strong economy. The company also raised
its annual sales and earnings guidance.
U.S. consumers are spending more, encouraged by rising wages,
low unemployment and tax cuts, spurring sales at most retailers
this quarter, including Best Buy rivals Target Corp <TGT.N> and
Walmart Inc <WMT.N>, which also sell consumer electronics.
Best Buy has about 15 percent of the U.S. consumer electronics
market. Together with Amazon, they have about 25 percent,
leaving room to grow, Best Buy Chief Executive Hubert Joly told
Reuters in March.
Earlier this month, the Richfield, Minnesota-based retailer said
it would buy health services provider GreatCall Inc for $800
million in cash, its largest acquisition ever, hoping to sell
health-related products and services to an aging U.S.
population.
Best Buy said second quarter same-store sales, or sales at
stores open at least a year, rose 6.2 percent in the quarter,
ended Aug. 4, versus analysts' estimates of a 3.8 percent rise.
Net income rose to $244 million, or 86 cents per share, in the
quarter, from $209 million, or 67 cents per share, a year
earlier.
Excluding charges, Best Buy earned 91 cents per share.
Analysts expected 83 cents, according to Thomson Reuters
I/B/E/S.
Revenue rose to $9.38 billion, beating estimates of $9.28
billion.
Best Buy shares have risen about 20 percent so far this year.
(Reporting by Nandita Bose in New York; Editing by Jeffrey
Benkoe and Steve Orlofsky)
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