Best Buy Domestic Comparable Second Quarter Sales Fall 12.7%

Scott Peters
30 Aug, 2022
New York City

Best Buy rose 3.1% to $75.90 after the electronic retailer posted better-than-anticipated quarterly results. 

The retailer said total revenues declined to $10.3 billion from $11.9 billion a year ago. 

Sales continue to fall as consumers shift priorities and limit purchases beyond basic products, 

The retailer has stepped up its online promotion activities to lure customers back. 

Domestic revenue fell 13.1% from a year ago to $9.57 billion primarily driven by a comparable sales decline of 12.7%. 

Comparable sales declined across almost all categories, with the largest drivers on a weighted basis being computing and home theater, the company said in the earnings release statement. 

Domestic comparable online revenue declined 14.7% to $2.97 billion and as a percentage of total domestic revenue, online revenue edged down to 31.0% compared to 31.7% last year. 

Second quarter net income dropped to $306 million or $1.35 a share from $734 million or $2.90 a share a year ago. 

 

Guidance 

The retailer guided full-year comparable sales to decline "slightly more than the 12.1% decline reported in the second quarter."

 

Stock Repurchase and Dividend 

In the quarter, the company returned a total of $208 million to shareholders through share repurchases of $10 million and dividends of $198 million. 

In the first-half the company has returned a total of $862 million to shareholders through share repurchases of $465 million and dividends of $397 million. 

The company paused share repurchases in the second quarter and announced its regular quarterly cash dividend of $0.88 a common share payable on October 11, 2022, to shareholders of record as of September 20, 2022.