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Best Buy’s web sales climb almost 10% in Q4

March 4, 2015 08:56 AM
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Best Buy Co. Inc.’s web sales grew at a slightly stronger rate than U.S. web sales as a whole in 2014. The consumer electronics retail chain says web sales for the fiscal year ended Jan. 31 increased 16.7%. The U.S. Commerce Department earlier this month estimated the country’s web sales increased 15.4% in 2014.

Best Buy did not report a full-year dollar total for online sales, but based on previous company reports, Internet Retailer calculates Best Buy generated approximately $3.54 billion online in 2014, versus an estimated $3.04 billion in 2013, a 16.4% increase.

On a quarterly basis, however, BestBuy.com sales lagged industry growth. Best Buy says its generated $1.72 billion online during Q4, up 9.7% from a year earlier. The Commerce Department, meanwhile, estimates web sales increased 14.6% in Q4. Commerce records Q4 on the calendar year; Best Buy records Q4 as November through January.

Best Buy credits the 9.7% year-over-year quarterly growth to higher conversion rates and increased traffic. It says slower sales of tablet computers and Best Buy’s move to shift mobile phone activations into the store offset the online growth.

For the three months ended Jan. 31, Best Buy reported:

  • Total revenue of $14.21 billion, an increase of 1.3% from $14.03 billion the same period a year ago.
  • Gross profit of $3.03 billion, or 21.3% of total revenue, up about 7.1% from $2.83 billion and 20.2% of total revenue a year ago.
  • Online sales of $1.72 billion, up 9.7% from a year ago. Best Buy did not disclose today what online sales were a year ago, but it previously reported it had $1.57 billion in web sales in its fiscal 2014 Q4, an Internet Retailer-calculated percent change of 9.6%.
  • Domestic revenue, which includes web sales, totaled $12.70 billion, up 3.3% from $12.30 billion a year ago.
  • International revenue totaled $1.51 billion, down 12.7% from $1.73 billion a year ago.
  • Domestic comparable-store sales moved into positive territory, up 2.8% from a negative 1.2% a year earlier. Best Buy includes web sales in its domestic comparable-store sales calculation.
  • International comparable-store sales were down 4.0%, a further decline from a 2.0% decline a year ago.
  • Net income of $519 million, up 77.1% from $293 million a year ago.

For the fiscal year ended Jan. 31, Best Buy reported:

  • Total revenue of $40.34 billion, down 0.6% from $40.61 billion a year ago.
  • Gross profit of $9.05 billion, or 22.4% of total revenue, down 3.7% from $9.40 billion and 23.1% of total revenue a year ago.
  • Net earnings of $1.23 billion, up 131.2% from $532 million a year ago.
  • Best Buy did not report a full-year dollar total for online sales, however based on previous company reports, Internet Retailer calculates Best Buy generated about  $3.54 billion online in 2014, versus an estimated $3.04 billion in 2013, a 16.4% increase. Best Buy reported a comparable online sales change of 16.7%.

Best Buy is No. 15 in the Internet Retailer 2014 Top 500 Guide.

 

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