best buy q2 earnings

This compares to earnings of $1.08 per share a year ago. Most of the capabilities that we've used, really on curbside but also in-store consultations, the cross-training in the stores. August 25, 2020 07:00 AM CDT. This is especially critical during the current environment and increase the need for remote consultation and assistance capabilities. On a year-over-year basis, Best Buy earnings rose 58% while sales climbed nearly 4%. As a result, we are starting to evolve the way we use our stores for fulfillment. With the commentary about sales growth up 20% in Q3 and you would expect that to moderate. The customer is in charge. She said manufacturers and its supply chain are "running at holiday levels.". A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release, which is available on our website, investors.bestbuy.com. Nicely, we have also seen our engaged customers start to rebound as we've reopened stores. We were a pioneer in this whole idea of buy online and pick up in store, which allowed us to be the first major retailer to figure out how do we ship from store. Honestly, the demand was so high as we opened the stores back up that we were not able to provide the level of service that we would have wanted. Mike Mohan -- President and Chief Operating Officer. Maybe discuss just a little bit further the makeup of these customers, where they may be coming from, how different are they than the customers that Best Buy catered to in the past. Deborah has more than 30 years of experience at the intersection of healthcare and technology, including leading the IBM Watson health team, where she launched artificial intelligence offerings designed to help doctors, researchers, healthcare providers, pharmacists and insurers better serve patients around the world. Good morning. Listen to webcast ET. The examples I just shared have largely stemmed from our response to the pandemic. Throughout the pandemic, we have been confident that we will emerge an even stronger company than we were before. And like we said in the prepared remarks, clearly, it's only been five months but some of those new customers we obtained in March have shown a much higher propensity to repeat sales than the new customers we retained last year during the same period. I wanted -- two questions. [Operator instructions] As a reminder, this call is being recorded approximately 11:00 a.m. Eastern Time today. We are planning for Q3 sales to be higher compared to last year, but likely will not continue at the current level of approximately 20%. Online sales shot up 242% in the U.S. compared with the prior year, as the website drew higher traffic and more people converted from browsing to buying. Certainly, I think that's a good stance to take. During the quarter, we repaid the full amount of our $1.25 billion credit facility that we had drawn in March. What are you seeing and sort of what I would describe as sort of post back-to-school category? So, we see the consumer demand strong. Shop Best Buy for electronics, computers, appliances, cell phones, video games & more new tech. But honestly, our bigger priority right now is not just who they are, it's how do we reengage them, how do we continue to bring them into the Best Buy ecosystem and make them a little bit stickier to the brank. The increase was driven by comparable sales growth of 15.1%, which was partially offset by 490 basis points of negative foreign currency impact. But overarchingly, we feel pretty strongly that we are in a good share position. As it relates to our people, we are investing in compensation and beginning to incorporate elements of the flexible workforce we first introduced at our investor day a year ago. Obviously, the stimulus, to some extent, has helped certainly up to this point. Best Buy Co., Inc. (BBY) CEO Corie Barry on Q2 2021 Results - Earnings Call Transcript Tue, Aug. 25 • 1 Comment Best Buy Co., Inc. (BBY) 2020 Regular Meeting of Shareholders Conference (Transcript) In terms of the strength, and Mike had said it, we are really seeing broad-based strength. Thanks for taking my questions. As Corie mentioned, the primary driver of the operating income rate expansion was lower non-GAAP SG&A expense of $219 million, which was 290 basis points favorable to last year as a percentage of sales. Sure. CEO Corie Barry said on a media call that some of Best Buy's sales have been driven by necessity as people work, learn and cook at home during the coronavirus pandemic. Going forward, we are on a path to develop a flexible workforce model that leverages technology and provides associates the ability to work whenever and wherever they want. They are navigating not only the impacts of the pandemic, but also fires, hurricanes and civil unrest. This pandemic and the swift shift in customer buying behavior really underscores the importance of our strong multichannel capabilities. Best Buy (BBY) delivered earnings and revenue surprises of 56.88% and 0.70%, respectively, for the quarter ended July 2020. Domestic online revenue of almost $5 billion was 53% of domestic revenue, which was up from 16% last year and 42% in Q1 of this year. Over time, this should allow us to deliver a more productive fulfillment model. We wanted to ask about the acceleration that you're seeing in sales in August. You talked, obviously, broad-based sales, right, in the quarter with the exception, as you called out, being the mobile category. Because the expectation for flat expenses in the third quarter seems to assume some reinvestment. There are some where we actually believe we're gaining. Yeah, from a cost reduction standpoint, clearly, we did a number of temporary actions and decisions to navigate through Q1 and Q2. We anticipate that our Q3 gross profit rate will continue to be pressured compared to last year, as we expect online sales will continue to be a higher percentage of our overall sales mix compared to the prior year. And as has been our brand for years, we will continue to look for cost efficiencies to help improve our cost basis. Got it. So, we will continue to improve the customer experience to kind of improve the gross margin rates online and continue to look at our cost structure overall for both channels. Our international SG&A decreased $24 million compared to last year. Does it have to do with still trying to control traffic into the store or the tighter inventory levels? For Best Buy Health, our focus on digital health, in particular helping seniors live more independently with our unique combination of tech and touch, has become even more relevant as the world responds to the pandemic and concepts like telehealth become more mainstream. Good morning. Joining me on the call today are Corie Barry, our CEO; Matt Bilunas, our CFO; and Mike Mohan, our president and COO. We did make some enhancements so you can trade in your old connected device portfolio online because we're trying to be cognizant of what the customer is going to need. Though Best Buy posted better than expected earnings, the reaction in the shares was swift and negative. Let's conquer your financial goals together...faster. Looks like we have time for one final question. And as a percentage of revenue, decreased approximately 500 basis points, primarily due to lower store payroll expense in Canada and the favorable impact of foreign exchange rates. Best Buy Reports Better-Than-Expected Q2 FY20 Earnings Best Buy Staff Writer. Thanks a lot, and good luck. So, customers can more easily select the right products based on the space in their homes by using the camera on their own phone. Best Buy earnings and sales on Tuesday beat Wall Street estimates for its fiscal second quarter. A Division of NBCUniversal. So, this isn't about being seamless across channels, it's about being seamless for the customer. So, are you seeing home theater and TV up? Good morning, everyone, and congrats to the Best Buy team on good execution. The Board of Directors of Best Buy Co., Inc. (NYSE:BBY) has authorized the payment of a regular quarterly cash dividend of $0.55 per common share. For the in-store experience, we are piloting a self-service, in-aisle checkout for selected SKUs. Clearly, the promotional cadence in events could change in Q3, and we -- holiday is -- will probably start earlier. Yeah. We continue to expand our assortment of health-related products and, looking forward, see this as an area of technology innovation we are uniquely well suited to help customers navigate. Market data powered by FactSet and Web Financial Group. Sure. And even at our investor day last year, we were talking about how the customer behavior was changing and accelerating, probably even moving faster than most retailers were. approximately 51,000 hourly workers that it furloughed. So, we're really focused on the customer experience in advance of new handset launches this fall on 5G. We also saw very strong digital demand for some of our newer categories such as digital health and fitness, at-home fitness equipment, sustainable living, outdoor activities and camping equipment. And then a quick follow-up, maybe sticking with the margin, just on gross. Together, we've established two funds totaling more than $10 million, one for the benefit of any full or part-time employee meeting general financial help and a second for those who have become ill with the virus. Moving to SG&A. We are excited to have her lead our strategic work to bring health technology into the home to help people live better, safer and more independent lives. We're evaluating when we may resume stock buybacks. Most importantly, we made the right decisions for our employees and customers. In FY Q2, Best Buy’s total revenue grew 4% year-over-year (y-o-y) to $9.9 billion on a 5.8% increase in comparable sales, even with lower advertising spending and a … At what point -- and I know there's a lot of uncertainty out there, I'm living it, we're living it every day in this post-COVID dystopia as I do this call from my home office. Overall, as we plan for the back half of the year, we continue to weigh many factors, including a potential future government stimulus actions, the current shift in personal consumption expenditures from areas like travel and dining out, the possible depth and duration of a pandemic, the risk of continued higher unemployment and the availability of inventory to match customer demand. And I think that what we will see is that the stores may be used differently. As a reminder, we had 53% of our business done online versus 42% in Q1, so parcel expense is the biggest gross profit rate pressure. That same-store sales growth was its highest in two years, even though its stores were open by appointment only for the first six weeks of the quarter. Sometimes that can depend on the -- even inventory position at the time. I would now like to provide some additional details on our Q2 results. Steve Forbes -- Guggenheim Securities -- Analyst. For the first six months of its fiscal year, Best Buy … We're seeing favorable trends across literally all of our categories right now as we exit Q2 and start Q3 with the one exception that we noted around mobile phones. Since the beginning of the pandemic, we've worked in partnership with our company founder, Dick Schulze, to provide our employees with emergency financial assistance. There are others where we think it's a little bit more moderate. Throughout the quarter, we experienced inventory constraints in a number of categories which did moderate our sales growth. In last year’s third quarter, the electronics retailer reported $8.82 billion in sales and 41 cents per share in non-GAAP earnings. Cumulative Growth of a $10,000 Investment in Stock Advisor, Best Buy (BBY) Q2 2021 Earnings Call Transcript @themotleyfool #stocks $BBY, Best Buy CEO: Shoppers Have Been "Permanently Changed" by the Pandemic, Best Buy Declares Fresh Dividend; Yield Is 2%, Best Buy (BBY) Q3 2021 Earnings Call Transcript, Retailers Have No Idea What Will Happen This Holiday Season, Best Buy Smashes Q3 Estimates as Online Sales Rocket 174%, Comps 23%, Copyright, Trademark and Patent Information. And maybe on a more near-term question. And I know it's early, but does that make you sort of rethink -- how do you think about what's the right number of stores going forward if you think a lot of this online shift is going to be permanent? Three, lower incentive compensation expense of approximately $30 million related to both field and corporate employees. Please go ahead. We believe it is essential to provide options that let customers choose what works best for them. And so, I think the team has done a very nice job across however the customer wants to shop, meeting their needs. That's helpful. From a capital expenditure standpoint, we still expect to spend in the range of $650 million to $750 million during fiscal '21. Best Buy Co Inc (BBY) Q2 2020 Earnings Call Transcript BBY earnings call for the period ending August 3, 2019. During the call today, we will be discussing both GAAP and non-GAAP financial measures. And we also said we view that as very temporal in nature. This decline in labor hours was partially offset by higher hourly wage rates, mainly incremental appreciation pay for those who are working in our stores throughout the quarter. I'd like to provide some insight into our approach, starting with three concepts we believe to be permanent and structural implications of the pandemic. I wanted to look at the margin differential between the retail stores and e-comm. At the beginning of Q2, we started welcoming customers back into our stores by offering an in-store consultation service to customers by appointment only. This is especially important for us to effectively respond should the virus flare up in certain markets. And with that, I want to thank you all for taking the time to join us today, and we look forward to chatting with you next quarter. All our stores will still ship out online orders, but approximately 250 locations will be positioned to ship out significantly more volume. Welcome to Best Buy's Q2 fiscal 2021 earnings call. Now, clearly, there is a work-from-home, learn-from-home component to this. So, there's a mix of all of those choices that will, over time, we believe, deliver a lower partial fulfillment expense. Thanks a lot for taking my question. Right now, we are building the foundation by leading our store employees through skills-based training for their existing roles. [Operator instructions] I'll now move to your next question, Peter Keith with Piper Sandler. So, we believe we continue -- we said it in Q1, we lost some share and we saw that trend continue again because our stores were largely closed. This is a public commitment to interview at least one qualified person of color for every open leadership role that is at the vice president level or higher, including the C-suite and board of directors. Our gross profit rate as a percentage of sales was higher than our expectations going into the quarter, driven by a more favorable promotional environment and a higher mix of sales from the stores channel. And Corie, my follow-up is you discussed that SG&A expenses will be similar to last year in the third quarter. The Zacks Consensus Estimate for second-quarter earnings stands at $1.01… It's also a place that we're launching our own same delivery with our Best Buy team members, which is a lower cost than using a third-party service. Yeah. Does Oracle Deserve More Credit for Q2 Results? In relation to SG&A, we made several cost decisions in Q1, and as we entered Q2 to align with the lower sales and channel trends we were seeing and expecting to continue at that point. Yeah. Experts have chosen 7 stocks out of 220 Zacks Rank #1 Strong Buys that have the highest potential to …

Angrej Kurta Suha, Porgy Fishing In Raritan Bay, St Mark's Dallas Application Deadline, Ice Age Lenny, Hotels In Antalya, Country Heat Workout Dvd Walmart, Condos For Sale Creekside Ontario, Ca, Talmage V Smith Wiki, Olathe School District Fall 2020, Albuquerque Academy Lawsuit, Activities To Encourage Independence And Social Skills In Students,