Best Buy's margin warnings dominate Q3 results, shares drop

|About: Best Buy Co. (BBY)|By:, SA News Editor

Best Buy (BBY) reports comparable stores sales in the U.S. rose 1.7% during Q3. International comps fell 6.4% in the period.

Of note, the retailer saw online comparable store sales in the U.S. soar 15.1% as multi-channel initiatives registered with consumers.

Best Buy's gross margin rate fell 60 bps in the U.S. to 23.6% as a number of factors - including mobile mix and higher warranty costs - contributed. The company also warned on margins for Q4.

BBY -7.2% premarket with the stock bid up in anticipation of a smashing quarter.