Best Buy profits down in Q2

27 August 2014 (Last Updated August 27th, 2014 18:30)

Consumer electronics retailer Best Buy said its profits for the second quarter declined from the prior year, as revenues dropped from both domestic and international segments.

Consumer electronics retailer Best Buy said its profits for the second quarter declined from the prior year, as revenues dropped from both domestic and international segments.

Net earnings attributable to the company’s shareholders declined to $146m from $266m in the prior year.

The retailer’s revenue declined to $8.896bn from $9.266bn in the prior year. Comparable sales fell 2.7%, compared to a drop of 0.6% last year.

Domestic revenue slid 2.4% to $7.59bn, primarily driven by a comparable sales decline of 2%, and a revenue decline of $20m due to the less favorable economics of the new credit card agreement.

Best Buy president and CEO Hubert Joly said: "The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%4, in line with our Domestic comparable sales decline of 2%."

Domestic online revenue was $581m and comparable online sales increased 22%.

International revenue declined 12.1% to $1.31bn amid a comparable sales decline of 6.7%, driven by China, Canada, and Mexico.