Best Buy Ups Q1 Home Entertainment Revenue 9.5%

Benefiting from a homebound consumer base due to the coronavirus pandemic, Best Buy May 21 reported a 9.5% increase in domestic entertainment revenue to $554 million for the first quarter (ended May 2). That compared with a 12.7% decline in the previous-year period.

The entertainment segment includes DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software.

International entertainment sales skyrocketed 58% to $58.2 million, compared with a 14% decline a year ago. The largest comparable domestic sales growth drivers were computing and gaming. These growth drivers were more offset by declines in home theater, mobile phones, digital imaging and services.

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Domestic online revenue of $3.34 billion increased 155.4% on a comparable basis due to increased traffic. As a percentage of total domestic revenue, online revenue increased 42.2%, versus 15.4% a year ago.

“In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81% of last year’s sales during the last six weeks of the quarter, even though not a single customer set foot in our stores,” CEO Corie Barry said in a statement. “The strong sales retention is a testament to the strength of our multi-channel capabilities and the strategic investments we have been making over the past several years.”

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Indeed, domestic revenue dipped slightly to $7.91 billion, from $8.48 billion, with operating income fell 27.5% to $241 million, from $332 million a year ago.

Barry thanked store employees for dealing with “immense change” in a workplace with customers, many of whom she said were scared, frustrated and, occasionally, hostile in COVID-19 environment.

“As challenging as the current situation is, I am certain Best Buy will remain a strong, vibrant company that is well positioned to deliver on our purpose and thrive in a new and different environment,” Barry said. “None of this is possible without [our employee] dedication, and I am truly grateful and feel lucky to be on the team with them.”

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