Boston, MA 08/26/2014 (wallstreetpr) – Financial results of the most recent quarter suggest that Best Buy Co Inc. (NYSE:BBY)‘s focus on e-commerce and cost-trimming has finally started paying off. Although BBY has reported a significant hike of 22% in the online sales, but it expects the outlook to remain soft in coming months due to another holiday shopping season.
Profit Up, Store Sales Down:
The financial results posted by Best Buy Co Inc. (NYSE:BBY) suggest that the profit for the quarter outperformed the experts’ expectations, but store sales continue to remain negative. BBY managed to post as much as $146 million or 42 cents a share profit for the quarter ended on August 2, 2014. It posted 77 cents a share or $266 million profit last year during the same period which was way more than the current profit figure.
It fell by 2% in the domestic market. The company expects the store sales to remain sluggish in the 4Q fiscal 2014 due to the festival season. According to Sharon McCollam, Chief Financial Officer of Best Buy Co Inc. (NYSE:BBY), “We expect the industry to remain soft especially the mobile phone segment due to different product launches in the festival season.” The industry is going behind cash-strapped consumers; therefore, the promotional activities may continue even in the latter half of the year.
Financials in the most recent quarter:
Online sales of the Best Buy Co Inc. (NYSE:BBY) products increased by 22% during the most recent quarter. The main reason behind this increment is but the excellent service provided by the BBY staff. The company has regularly been focusing to trim expenses and recover foreign interests. The international sales of the company declined by 6.7% in the past few months, but the burden declined due to its step to discontinue operations in China. The revenues of the company fell by 4% to $8.9 billion in the recent quarter due to discontinuation of international operations in China. Market experts predicted BBY to earn revenue of $8.99 billion and profit of 31 cents.
