Best Buy (BBY) reported earnings Tue 24 May 2016 (b/o)

** charts before earnings **

** charts after earnings **

Best Buy beats by $0.09, beats on revs; guides Q2 EPS below consensus, revs above consensus; reaffirms FY17 guidance; CFO Sharon McCollam to step down; Strategic Growth Officer Corie Barry named new CFO:

• Reports Q1 (Apr) earnings of $0.44 per share, excluding non-recurring items, $0.09 better thanthe Capital IQ Consensus of $0.35; revenues fell 1.3% year/year to $8.44 bln vs the $8.3 bln Capital IQ Consensus. 
• Comparable sales were essentially flat (-0.1%) vs. (2)-(1%) guidance against a backdrop where the NPD-reported categories were down 1.9%.
  • From a merchandising perspective, comparable sales growth in health & wearables, home theater, major appliances and computing was offset by declines in mobile phones, tablets and gaming. As expected, television sales related to the shift of the Super Bowl into Q1 FY17 positively impacted the Domestic segment by ~70 basis points. The company also saw continued revenue declines in services due to investments in services pricing and the reduction of frequency of claims on extended warranties which has reduced repair revenue.
    • Consumer electronics comps +5.6%; computing and phones -3.5%; entertainment -11.6%; appliances +14.3%; services -10.7%.
  • Domestic online revenue of $832 million increased 23.9% on a comparable basisprimarily due to higher conversion rates and increased traffic. As a percentage of total Domestic revenue, online revenue increased 210 basis points to 10.6% versus 8.5% last year.
• Co issues guidance for Q2, sees EPS of $0.38-0.42, excluding non-recurring items, vs. $0.50 Capital IQ Consensus Estimate; sees Q2 revs of $8.35-8.45 bln vs. $8.31 bln Capital IQ Consensus; comps ~flat.