Best Buy (BBY) reported earnings on Tue 24 Nov 2019 (b/o)

 ** charts after earnings **

 

Best Buy beats by $0.34, beats on revs; Q3 US comps +22.6%

Reports Q3 (Oct) earnings of $2.06 per share, excluding non-recurring items, $0.34 better than the S&P Capital IQ Consensus of $1.72; revenues rose 21.4% year/year to $11.85 bln vs the $10.97 bln S&P Capital IQ Consensus.

Domestic revenue of $10.85 billion increased 21.0% versus last year. The increase was primarily driven by comparable sales growth of 22.6%, which was partially offset by the loss of revenue from permanent store closures in the past year. Domestic gross profit rate was 24.0% versus 24.3% last year.

From a merchandising perspective, the company generated comparable sales growth across most of its categories, with the largest drivers being computing, home theater and appliances. These growth drivers were partially offset by a decline in mobile phone sales.

Barry continued, "For our employees, we raised our starting wage to $15 per hour, paid recognition bonuses to field employees and reinstated our short-term incentive compensation. In the early days of the pandemic, we established an employee hardship fund that continues to provide emergency funds to our employees who are sick, have loved ones who are sick or are experiencing financial hardship. In addition, in recent weeks, we have resumed our 401(k) employer match and invested significantly in our employee well-being benefits."