--> BBY
Best Buy beats by $0.13, reports revs in-line; guides
Reports Q2 (Jul) adj. earnings of $0.44 per share, $0.13 better than the Capital IQ Consensus Estimate of $0.31; revenues fell 4.0% year/year to $8.9 bln vs the $8.98 bln consensus.
"The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%, in line with our Domestic comparable sales decline of 2.0% [co guided for Q2 comps negative low single digits]...
industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches. Therefore, absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters ...
we are expecting the non-GAAP operating income rate in Q3 and Q4 to increase in line with the year-over-year improvement that we saw in the first half."
non-GAAP Domestic gross profit rate was 23.4% vs. 23.9% last year, in-line with guidance for a YoY decrease.
"The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%, in line with our Domestic comparable sales decline of 2.0% [co guided for Q2 comps negative low single digits]...
industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches. Therefore, absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters ...
we are expecting the non-GAAP operating income rate in Q3 and Q4 to increase in line with the year-over-year improvement that we saw in the first half."
non-GAAP Domestic gross profit rate was 23.4% vs. 23.9% last year, in-line with guidance for a YoY decrease.