The company’s shares, which had fallen 24 percent in the past six months, were up 14.9 percent at $33.62 in morning trading. It is now updating its Apple shop-in-shops at 740 stores, including new fixtures and more display tables for phones, computers, and tablets.
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And retailers, many of which have close ties to China from both the manufacturing and consumer sides, are unlikely to escape the changing economic landscape there.
Revenue ticked up about 1% to $8.53 billion, though growth was dented by a 26% slide in global sales due to the stores closed in Canada and foreign exchange impacts. The company recorded an increase of 3.8 percent in comparable sales, compared to a fall of 2.2 percent in the year-earlier period.
The Richfield, Minnesota-based retailer, which is also known as the “big blue box” because of the prominent design on Best Buy stores, reported net earnings attributable to Best Buy shareholders of $164 million or $0.46 per share for the second quarter, higher than $146 million or $0.42 per share in the prior-year quarter. Weakness in the global segment, which saw revenue decline by 25%, was more than offset by growth in the much larger domestic business.
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While Apple has been mostly mum on the numbers behind Apple Watch sales so far, Best Buy is standing behind the iPhone maker’s general message that the Apple Watch has been a hit with customers. “He also said that Best Buy will begin selling AppleCare product service and support this quarter, and will start testing out being an authorized service provider at 50 stores”. The company said the outlook for consumer spending remains good for the third quarter and its expects flat to low-single digit revenue growth in the US and a stable operating margin.
