The U.S.' largest consumer electronics retailer showed further signs of coming back with earnings that crushed analysts estimates. Fred Katayama reports.
Best Buy showing further signs of coming back. Its domestic revenue increased in the latest quarter, with online sales rising more than 5 percent. And it made more money on those sales by selling higher margin products and cutting costs. Consumers snapped up large screen TVs, mobile phones, and appliances. RBC Capital analyst Scot Ciccarelli said, "Against a backdrop of a consumer electronics category that declined by 5.3 percent ... and multiple competitors such as Walmart and hhgregg pointing to poor sales trends in consumer electronics and headwinds from the West Coast port delays, we think this is a pretty favorable outcome." Internationally, Best Buy's revenue plunged, but that was partly because it closed 66 of its Future Shop stores in Canada and consolidated the remaining 65 under the Best Buy brand. While Best Buy's quarterly profit and revenue declined, earnings crushed analysts estimates. Its shares rocketed higher in early trading, erasing some of its 12 percent loss this year. After losing sales to the likes of Amazon.com and Walmart, Best Buy has been closing unprofitable stores, opening new stores within stores, and expanding its line of private label products. It sees its domestic business strengthening further in the current quarter.