Best Buy Sees Slight Uptick in Winter Holiday Entertainment Sales14 Jan, 2016 By: Erik Gruenwedel
Best Buy Co. Jan. 14 reported a 0.5% same-store sales increase in entertainment during the nine-week winter holiday retail period ended Jan. 2, compared to 0.4 increase during the previous-year period ended Jan. 3, 2015.
The entertainment category includes packaged media such as Blu-ray Disc and DVD movies and TV shows, music CDs, video games and CinemaNow.
The category generated $1.2 billion, or 12% of total revenue, compared with $1.21 billion (12%) during the previous-year period.
Consumer electronics comp sales increased 4.3% ($170 million) to $3.6 billion, representing 36% of total revenue.
Online revenue increased 12.6% to $1.7 billion, compared with a 13.4% increase ($1.48 billion) in 2014. As a percentage of total domestic revenue, online sales increased 16.7%, from 14.7% a year ago.
Overall, domestic sales declined 0.8% ($100 million) year-over-year to $10 billion.
“The domestic decline was primarily driven by the mobile phone category, which was softer than both our expectations and the prior year,” CEO Hubert Joly said in a statement.
Indeed, same-store sales in computing and mobile phones dropped 7.2% ($200 million) to $4.2 billion. The category represented 42% of revenue, compared with 44% in 2014.