Best Buy Q3 Entertainment Sales Decline 6%19 Nov, 2015 By: Erik Gruenwedel
Best Buy Co. Nov. 19 reported a 6% drop in third-quarter (ended Oct. 31) same-store domestic entertainment sales of $566.2 million — the latter up 1.2% from $559.4 million during the previous-year period when same-store entertainment sales jumped 16.6%.
The entertainment category includes packaged media such as Blu-ray Disc and DVD movies and TV shows, music CDs and video games.
Computing and mobile phones continued to drive (at 48% of) total domestic revenue at $3.8 billion, despite a year-over-year same-store sales dip of 1.5%. Consumer electronics generated 30% of revenue at nearly $1.2 billion, with same-store sales up 3%.
Meanwhile, the CE chain continues to expand e-commerce, which saw same-store sales increase 18% as Best Buy’s new mobile site and overall enhanced dotcom capabilities continued to drive higher conversion rates and increased traffic. These results were achieved in a context in which industry sales in The NPD Group-tracked categories were down 4.3%.
Online revenue of $709 million increased 18.3% on a comparable basis primarily due to higher conversion rates and increased traffic. As a percentage of total domestic revenue, online revenue increased 130 basis points to 8.8% versus 7.5% a year ago.
Net income increased nearly 20% to $244 million, from $204 million a year ago on overall revenue of $8 billion, which was relatively flat year-over-year.
CEO Hubert Joly said Best Buy is pushing 4K Ultra High-Definition televisions, in addition to health and wearables electronics, over the Christmas holidays shopping season.
“We are excited by what we are offering and delivering to our customers during this shopping season,” Joly said.