Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Best Buy Co Inc Crushes Earnings Targets; Shares Rise

Consumer electronics retailer Best Buy's (NYSE: BBY  )   earnings report for the first quarter of fiscal year 2015 sparked a surge of investor confidence, sending the stock as much as 8.4% higher in early morning trading today.

Best Buy's revenue slipped 3.3% lower year-over-year, landing at $9.0 billion. Non-GAAP earnings still managed to increase from $0.32 to $0.33 per diluted share. Analysts were looking for earnings near $0.20 per share on $9.2 billion in sales, making it a mixed quarter.

Same-store sales slipped in both the domestic segment and key international markets such as Mexico, Canada, and China. Home theater systems and tablet computers were particularly weak in the first quarter, balanced by growth in whiteware appliances and gaming systems. At the same time, cost reductions under the "Renew Blue" banner ran ahead of schedule, driven by corporate-level reorganization and a more efficient operating model for individual Best Buy stores.

Looking ahead, Best Buy expects same-store sales to continue falling in the second and third quarters. CFO Sharon McCollam noted in the press release that the company is expecting "ongoing softness in the mobile phone category as consumers eagerly await highly-anticipated new product launches."

Best Buy CEO Hubert Joly was quoted in the press release as saying, "We achieved market share gains in the U.S., fueled by our improved price competitiveness and an enhanced customer experience focused on advice, service and convenience."

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2961454, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:10:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:02 PM
BBY $36.43 Up +0.99 +2.79%
Best Buy CAPS Rating: *