Strong comparable sales helped Best Buy advance its earnings in the second quarter.
In the quarter, Best Buy recorded net earnings from continuing operations of $209 million, or 67 cents per diluted share, versus $182 million, or 56 cents per diluted share, in the period a year prior. Adjusted net earnings from continuing operations were $214 million, or 69 cents per diluted share, versus $183 million, or 57 cents per diluted share, in the quarter a year before. Adjusted diluted earnings per share from continuing operations topped a MarketBeat analyst average estimate of 63 cents.
Comparable sales gained 5.4% from the period last year on both an enterprise and domestic U.S. basis. The comparable online sales component increased 31.2% from the 2016 period to $1.1 billion. On a merchandise basis in the domestic market, second quarter comparable sales gained in computing, wearables, smart home, mobile phones and appliances year over year, Best Buy indicated, but growth in those categories was partially offset by a comp decline in tablets.
Net revenue was $8.94 billion versus $8.53 billion in the quarter a year earlier. Domestic revenue was $8.27 billion versus $7.89 billion in the year-previous period. Operating income was $321 million as compared with $289 million in the year-prior quarter.
“We are pleased to report strong top and bottom line growth for the second quarter of fiscal 2018,” said Hubert Joly, Best Buy chairman and CEO. “Our higher-than-expected comparable sales of 5.4% were driven by stronger consumer demand for technology products and by the strong execution of our strategy. Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend. And, with our effective merchandising and marketing activities, combined with our expert advice and service available online, in-store and in-home, we are garnering an increasing share of those dollars.”
