Best Buy Q2 Entertainment Sales Dip 2%25 Aug, 2015 By: Erik Gruenwedel
Decline overshadowed by better-than-expected storewide domestic results
Best Buy Co. Aug. 25 reported a 2% decline in second-quarter (ended Aug. 1) same-store entertainment sales compared with a 16% increase during the prior-year period.
The entertainment category includes packaged media such as Blu-ray Disc and DVD movies and TV shows, music CDs and video games. The segment represented 6% ($472.6 million) of domestic revenue, which was about the same as a year ago.
Computing and mobile phones again represented the bulk (47%) of sales, generating $3.7 billion in revenue, which was comparable to a year ago. Same-store sales increased 1.5% when factoring installment billing plans, which was positive compared with a 5.9% drop a year ago.
Consumer electronics same-store sales increased 7.3%, generating 32% ($2.5 billion) in revenue. Notably, Best Buy reported a decline in tablet sales.
Meanwhile, the CE chain continues to expand e-commerce, which contributed to a 17% increase in comparable online sales. Online revenue totaled $676 million, or 8.6% of total ($7.9 billion) domestic sales.
Net income increased 12% to $164 million, from $146 million a year ago on overall revenue of $8.5 billion, which was relatively flat year-over-year.