Best Buy Co., Inc. (NYSE: BBY) announces its 13-week second quarter financial results ending July 30, 2022 (“Q2 FY23”), with revenues dipping 12% as compared to the 13-week second quarter ended July 31, 2021 (“Q2 FY22”).
“I am incredibly proud of our teams as they continue to rise to the challenges of the past few years and I remain impressed with their ability to lead through the rapidly shifting business environment,” Corie Barry, Best Buy CEO, said, according to Businesswire.
“Our comparable sales were down 12.1% as we lapped strong comparable sales growth last year of 19.6%. Our online sales penetration, at 31% of our total Domestic sales, is almost twice as high as pre-pandemic Q2 FY20 while our diluted EPS grew over 40% versus Q2 FY20.”
Barry called the current sales environment “uneven,” saying the company expected consumer electronics to be “softer than last year following two years of elevated growth driven by unusually strong demand” for tech products.
The CEO says Best Buy will continue its focus on balancing near-term response to the current economic conditions and managing what is in the company’s control.
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Best Buy’s domestic revenue of $9.57 billion decreased 13.1% versus last year, primarily driven by a comparable sales decline of 12.7%, according to Businesswire.
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The domestic online revenue of $2.97 billion was a decrease of 14.7%. Web sales comprised 31.0% of total domestic revenue compared with 31.7% last year. Domestic gross profit rate was 22.0% versus 23.7% last year.
Lower gross profits are due primarily to the following reasons, according to Businesswire:
- lower services margin rates
- lower product margin rates
- higher supply chain costs
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