Electricals giant Best Buy has posted a leap in third quarter sales and profits and upped full-year earnings guidance.
However like-for-likes at Best Buy Europe – the joint venture with Carphone Warehouse which will open its first big box stores in the UK next year and whose sales were included for the first time in Best Buy’s comparable store sales calculation – fell in the three months to November 28.
The retailer reported that third quarter net profits jumped to $227m (£140m) from $52m (£32m) in the comparable period last year. Sales rose 5% to $12bn (£7.4bn).
Best Buy chief executive Brian Dunn said the performance was testament to the company’s “customer-centricity” and that in its home market there had been increased customer traffic and a higher average transaction value. The retailer estimates it increased domestic market share by 230 basis points.
Internationally, sales fell 6% to $3.1bn (£1.9bn). Like-for-likes fell 6.7% and foreign exchange fluctuations took a toll. Best Buy Europe’s sales fell 3% while in Canada there was a “high single-digit decline”. However international operating profit was $23m (£14m) compared to a loss last time.
Best Buy International chief executive Bob Willett said: “Although the top-line results for our international segment continue to be challenged, we were very pleased with the growth in operating profits in Europe and Canada.
“Our diligent focus on expense management this year has allowed us to improve the international segment’s profitability while continuing to plant seeds of growth in new geographies.”
Best Buy expects earnings per share for the full year to be up between 4% and 9%.