Best Buy +2% after comparable sales beat
Feb. 27, 2020 7:19 AM ETBy: Clark Schultz, SA News Editor4 Comments
- Best Buy (BBY) reports domestic comparable store sales rose 3.4% in Q4 vs. +2.2% consensus.. Domestic comparable online sales shot up 18.7% Y/Y during the quarter.
- Total enterprise comparable sales rose 3.2% during the quarter vs. +1.9% consensus.
- Gross profit for the domestic business fell 90 bps to 21.2% of sales. The gross profit rate decrease of approximately 90 bps was primarily driven by mix into lower-margin products, a lower gross profit rate in the services category and the impacts associated with tariffs on goods imported from China.
- Looking ahead, Best Buy sees Q1 enterprise revenue of $9.1B to $9.2B vs. $9.3B consensus and EPS of $1.00 to $1.05 vs. $1.01 consensus. Full-year enterprise revenue of $43.3B to $44.3B is anticipated vs. $44.2B consensus.
- Coronavirus update: "As we enter FY21, we are closely monitoring the developments related to the coronavirus outbreak. This is a very fluid situation, which makes it difficult to determine exact financial impacts from disruptions in supply chain. Based on what we know today, we have assumed the majority of the impacts occur in the first half of the year. Therefore, we view this as a relatively short-term disruption that does not impact our long-term strategy and initiatives. Our guidance ranges for both Q1 and the full year reflect our best estimates of the impacts at this time."
- Shares of Best Buy are up 2.21% premarket to $84.00.
- Previously: Best Buy +2% after comparable sales beat (Feb. 27)