US electricals giant Best Buy, which will open its first big-box stores in the UK next spring, has posted a 22% fall in profits for its second quarter.
The retailer reported net earnings of $158m compared to $202m in the same period last year. Sales rose 12% to $11bn.
The retailer reported a 3.9% fall in like-for-likes, including a 3.1% fall in its domestic market. The retailer said it had gained market share.
Best Buy said said: “Traffic in the fiscal second quarter increased slightly over the prior year period but was offset by a slight decline in the average ticket.
“Comparable store sales gains in notebook computers, mobile phones and flat-panel TVs were more than offset by decreases in gaming, digital cameras, music and movies.”
International revenue rose 65% to $2.7bn, partly reflecting the contribution from Best Buy Europe, the partnership with Carphone Warehouse that will run the UK shops. Like-for-like figures for Best Buy Europe will be included in Best Buy’s international sales updates from the third quarter.
Best Buy’s overseas operations made a $35m operating loss in the quarter. The retailer said: “The international segment’s results were significantly impacted by the phasing of quarterly earnings in Best Buy Europe.
“Best Buy Europe derives most of its operating profits during Best Buy’s fiscal first and fourth quarters while the second quarter has historically represented the year’s low point for operating results.”
Best Buy Europe is expected to deliver annual results in line with original guidance.