November 24, 2020
Best Buy Nov. 24 reported strong third-quarter (ended Oct. 31) sales, driven in part by a near 174% increase in e-commerce revenue and entertainment.
The entertainment segment, which includes products such as DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software, saw same-store sales increase 17.5% compared with a 20.8% decline during the previous-year period. The division generated 5% of domestic revenue, or $542.5 million, compared with $448.2 million last year.
Internationally, entertainment sales skyrocketed 35.6% to $50 million, compared to a 31.1% drop at $40 million last year.
“Our comparable sales grew a remarkable 23% as we leveraged our unique capabilities, including our supply chain expertise, flexible store operating model and ability to shift quickly to digital, to meet what is clearly elevated demand for products that help customers work, learn, cook, entertain and connect in their homes,” CEO Corie Barry said in a statement.
Barry said the pandemic environment has underscored Best Buy’s purpose to “enrich lives through technology,” and the capabilities the consumer electronics chain is “flexing and strengthening” now would benefit it going forward.
One strategy is e-commerce, which saw revenue explode 173.7% to $3.82 billion, from $1.39 billion last year.