Boston, MA 05/23/2014 (wallstreetpr) – A chain of retail store operator on consumer electronics, Best Buy Co Inc (NYSE:BBY) expects comparable store sales for the second and third quarters to witness a fall in the absence of any major product launches. The company’s announcement comes after its earnings topped analysts’ estimations mainly on account of cost cutting measures, since its revenue fell shy of predictions. One of the reasons for revenue drop is a fall in comparable store sales during the period.
COMPS Forecast
The company does not see any turn around in fortunes during the June and September quarters in the fall of industry-wide sales among the consumer electronics categories that Best Buy Co compete. The electronics retailer also expects softness in the sale of mobile segment to continue in the absence of any major new launches. Therefore, the company predicts comparable store sales to witness a fall in the low-single digits during the next two quarters.
1Q Results
Best Buy Co Inc (NYSE:BBY) reported net earnings of $461 million or $1.31 a share for the first quarter compared to a net loss of $81 million or a loss of 24 cents a share in the year earlier quarter. On an adjusted basis, net earnings rose to $116 million or 33 cents a share from $110 million or 32 cents a share in the year-ago quarter. Wall Street analysts, on average, expect the company to report earnings of 20 cents a share.
Total revenue dipped 3% to $9.04 billion from $9.35 billion in the previous year quarter. Street analysts predict the electronics item seller to generate revenue of $9.21 billion. While revenue from the domestic segment fell 2.1% to $7.78 billion, revenue from international segment dropped 10.5% to $1.25 billion.
Best Buy Co’s comparable store sales slipped 1.9% on top of a 1.4% fall in the preceding year quarter. While the domestic segment witnessed 1.3% fall in comparable store sales, international division recorded 5.8% drop.
Best Buy Co Inc (NYSE:BBY)’s earnings were benefited by cost control in selling, general and administration at 19.6% of revenue on an adjusted basis compared to 20.5% in the year-ago quarter.
