Best Buy beats by $0.15, beats on revs and comps; guides Q3
- Reports Q2 (Jul) earnings of $0.49 per share, $0.15 better than the Capital IQ Consensus of $0.34; revenues rose 0.8% year/year to $8.53 bln vs the $8.28 bln consensus.
- Comps +3.8% (+2.7% ex-100 bps impact from installment billing) vs. estimates near +1%; adj. operating margin +50 bps to 3.4%.
- "In the Domestic business, our comparable sales increased 2.7%, excluding the impact of installment billing, driven by continued strong performance in major appliances, large screen televisions and mobile phones. Online comparable sales increased 17.0% as our investments in new capabilities continued to drive increased traffic and higher conversion rates. We also saw industry revenue in the NPD-tracked categories, representing 65% of our revenue, improve from a decline of 5.3% in Q1 to a decline of 1.3%8 in Q2."
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Guidance: Co sees flat to negative low single digit rev growth and operating margin flat to -20 bps; in the domestic business, co sees flat to low single digit rev growth with flat operating margin driven by a higher gross profit rate offset by increased SG&A due to inflation and growth-related investments.
- Co sees no impact from recent volatility in financial markets