Apple Watch interest may not be as high as it was when the device first launched, but at Best Buy the wearable is still a big deal.
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Best Buy’s Q2 report is likely to take a back seat to how company management is thinking about the next couple of quarters, including the holiday season, UBS analyst Michael Lasser said in an August. 9 research note. The company stated that the revenue growth was impacted by nearly 26% as its worldwide sales declined due to currency impact and closure of stores in Canada. But because demand was “so strong”, Joly says the company will accelerate its availability of the Apple Watch to all 1,050 stores.
But Best Buy’s strong performance is also the latest evidence that it has been able to successfully navigate a tough consumer electronics market as it wrestles with price pressures and increased competition from online stores, notably Amazon.com. The National section consists of all operations inside America and its own territories, managing e-commerce, retail store and call center businesses under a range of brand names, including, Best Buy (NYSE:BBY), Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales.
Best Buy Co Inc (NYSE:BBY) reported its earnings for the second quarter of fiscal year 2016 (FY16) before the market opened today.
So what: Best Buy reported quarterly revenue of $8.53 billion, up 0.8% year-over-year and $240 million higher than the average analyst estimate.
The company’s profit of 49 cents per adjusted share far exceeded the 34 cents analysts were expecting.
Buyers are clamoring to buy Apple products, but sometimes a Best Buy location is closer than an Apple Store. It operates through two segments: global and Domestic. Comparable sales for the online segment grew by 17% during the quarter.
Best Buy shares have declined 25 percent since the beginning of the year, while the Standard & Poor’s 500 index has fallen 8 percent.
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Operating income as a percentage of revenue rose to 3.4 percent from 2.7 percent previous year.
