• CEPro_logo_blue-new
  • TOPICS
      • News
        • People & Places
        • Product Briefs
      • Projects
      • Events
      • Control
        • Central Vac
        • Energy/Power
        • HVAC/IAQ
        • Interfaces/Devices
        • Lighting
        • Motorized Shades
        • Whole House Systems
      • Audio/Video
        • Amplifiers/Receivers
        • AV Accessories
        • AV Racks
        • Cabling
        • Displays
        • Furniture
        • Headphones
        • Home Theater
        • Media
        • Mounts/Lifts
        • Multiroom AV
        • Projectors/Screens
        • Speakers/Subwoofers
        • Wireless AV
      • Security
        • Access Control
        • Alarms/Sensors
        • Services/Platforms
        • Surveillance/Cameras
      • Business Support
        • Associations/Buying Groups
        • Cell Phone Boosters
        • Distributors/Reps
        • Operations
        • Recurring Revenue
        • Research
        • Sales/Marketing
        • Software Services
        • Tools/Testers
      • Networking
        • Cellular
        • Devices/Equipment
        • Wireless
        • Wired/Installation
      • Markets
        • Builders
        • Commercial
        • Design
        • Europe
        • Outdoors
        • Resimercial
        • Wellness
      • CE Pro Hub Pages
        • Bose
        • Inside Sound United
        • Nice
        • Savant
  • PRODUCTS
  • RESOURCES
    • Reports/Downloads
    • Buyer’s Guide
    • Webcasts
    • Podcasts
    • Digital Edition
    • CE Pro-iQ
  • SUBSCRIBE
    • CEDIA SHOW UPDATES
    • CEPRO PRINT EDITION
    • CEPRO DIGITAL EDITION
    • CEPRO NEWSLETTERS
  • DISCOVER
    • CEDIA Expo
      • September 29 – October 1
        Dallas, TX
      • VISIT SITE
    • KBIS
      • February 8 – 10
        Orlando, FL
      • VISIT SITE
    • Total Tech Summit
      • November 13-15
        Las Vegas, NV
      • VISIT SITE
    • Commercial Integrator
      • VISIT SITE
    • Security Sales
      • VISIT SITE
    • Tech Decisions
      • VISIT SITE
    • Campus Safety
      • VISIT SITE
    • Design Well
      • VISIT SITE
    • KBB Online
      • VISIT SITE
    • AV-iQ
      • VISIT SITE
    • CE Pro-iQ
      • VISIT SITE
  • Search
  • TOPICS
    • News
      • People & Places
      • Product Briefs
    • Projects
    • Events
    • Control
      • Central Vac
      • Energy/Power
      • HVAC/IAQ
      • Interfaces/Devices
      • Lighting
      • Motorized Shades
      • Whole House Systems
    • Audio/Video
      • Amplifiers/Receivers
      • AV Accessories
      • AV Racks
      • Cabling
      • Displays
      • Furniture
      • Headphones
      • Home Theater
      • Media
      • Mounts/Lifts
      • Multiroom AV
      • Projectors/Screens
      • Speakers/Subwoofers
      • Wireless AV
    • Security
      • Access Control
      • Alarms/Sensors
      • Services/Platforms
      • Surveillance/Cameras
    • Business Support
      • Associations/Buying Groups
      • Cell Phone Boosters
      • Distributors/Reps
      • Operations
      • Recurring Revenue
      • Research
      • Sales/Marketing
      • Software Services
      • Tools/Testers
    • Networking
      • Cellular
      • Devices/Equipment
      • Wireless
      • Wired/Installation
    • Markets
      • Builders
      • Commercial
      • Design
      • Europe
      • Outdoors
      • Resimercial
      • Wellness
    • CE Pro Hub Pages
      • Bose
      • Inside Sound United
      • Nice
      • Savant
  • PRODUCTS
  • RESOURCES
    • Reports/Downloads
    • Buyer’s Guide
    • Webcasts
    • Podcasts
    • Digital Edition
    • CE Pro-IQ
  • SUBSCRIBE
    • CEPRO PRINT EDITION
    • CEPRO DIGITAL EDITION
    • CEPRO NEWSLETTERS
    • CEDIA SHOW UPDATES
  • DISCOVER
    • Cedia Expo
      VISIT SITE
    • Commercial Integrator
      VISIT SITE
    • Security Sales
      VISIT SITE
    • Tech Decisions
      VISIT SITE
    • Campus Safety
      VISIT SITE
    • Design Well
      VISIT SITE
    • Total Tech Summit
      VISIT SITE
    • KBB Online
      VISIT SITE
    • AV-iQ
    • CE Pro-iQ
M
POPULAR SEARCHES
News
Projects
Control
Audio Video
Security
Business Support
Markets
SUBSCRIBE CEDIA EXPO CEPro-iQ
News
November 23, 2021

Best Buy Ekes Out 2% Growth in Q3; Stock Price Falls

Best Buy reports slower growth with lower profit margins due to price pressures on its TotalTech membership program.
Jason Knott   Updated: December 7th, 2021
Article:
News
November 23, 2021

Best Buy Ekes Out 2% Growth in Q3; Stock Price Falls

Best Buy reports slower growth with lower profit margins due to price pressures on its TotalTech membership program.

Best Buy (NYSE: BBY) is reporting a bit of a mixed bag for its fiscal year 2022 third-quarter ending October 30, 2021. In the U.S., the company saw 2% sales growth to $10.985 billion, while internationally its sales fell 7% to $925 million. Overall, the company had 1/2% growth for the quarter. Meanwhile, the company cited price pressures on its TotalTech membership as one reason for lower profit margins. Best Buy’s stock fell 14% in pre-market trading following the announcement.

The increase was primarily driven by comparable sales growth of 2.0%, which was partially offset by the loss of revenue from permanent store closures in the past year. From a merchandising perspective, the largest drivers of comparable sales growth on a weighted basis were appliances, home theater and mobile phones. These positive drivers were partially offset by a decline in computing.

Online revenues represented 31.3% of sales, down from 35.2% last year in the midst of the pandemic. The company’s domestic gross profit rate was 23.4% versus 24.0% last year. According to Best Buy, the gross profit rate decrease was primarily due to:

  • Lower product margin rates, which were driven by lapping low levels of promotions, product damages and returns last year, as well as increased inventory shrink
  • Lower services margin rates, which included rate pressure associated with the company’s new Totaltech membership offering.

“We delivered record Q3 results, including 2% domestic comparable sales on top of 22.6% last year, as our leaders continued to drive new ways of operating and our employees continued to do amazing things to support our customer’s technology needs in knowledgeable, fast and convenient ways,” says Corie Barry, Best Buy CEO. “Our omnichannel capabilities and our ability to inspire and support across all of technology in a way no one else can means we are uniquely positioned to seize the opportunity in this environment and in the future.”

Best Buy totaltech
Related: Best Buy Takes $199 Totaltech Membership Nationwide, Adds Exclusive Access to Holiday Products

“More people continue to sustainably work, entertain, cook and connect at home, and while customers are returning to stores, digital sales were still more than double pre-pandemic levels, and phone, chat and in-home sales continued to grow,” Barry continues. “During the third quarter, we reached our fastest small-package online shipping times ever as our same-day delivery was up 400% and we nearly doubled the percent of products delivered within one day compared to last year.”

The Future of Digital Lighting & Control

As a custom integrator, lighting is in demand. Effective communication, education and showcasing the value proposition of LED light fixtures in conjunction with integrative control systems are the keys to overcoming challenges and closing sales in this specialized market. Join us as we discuss the future of digital lighting and control with David Warfel from Light Can Help You and Patrick Laidlaw and Mark Moody from AiSPIRE. Register Now! 

“We are looking forward to a strong holiday season and believe we are extremely well-positioned with both the tech customers want and fast and convenient ways to get it,” says Matt Bilunas, Best Buy CFO. “We are committed to driving initiatives that will deliver future growth and our Q4 outlook reflects continued investments in our new membership program, technology, advertising and our health strategy.”

For the full fiscal year 2022, the company’s outlook is revenue between $51.8 billion and $52.3 billion, which is an overall growth rate between 10.5% and 11.5%. Heading into Q4, the company predicts revenues between $16.4 billion and $16.9 billion.

  • Page 1

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our digital newsletters!

ABOUT THE AUTHOR

Jason Knott
Follow
Jason Knott:
Jason Knott is Data Solutions Architect and Evangelist for D-Tools. He is the former Editor-in-Chief of CE Pro. He can be reached at jasonk@d-tools.com.
View Jason Knott's complete profile

ARTICLE TOPICS

News

ARTICLE TAGS

Best Buy • Big-Box Retailers • Home Theater • Retail • Smart Appliances

SHARE

Share On Facebook
Share On Twitter
Share On Linkedin
Share On Whatsapp
Share Via Email
Copy URL
← Previous Article Next Article →
Article Business SupportCE Pro SummitCommercialEventsNews

Total Tech Summit 2023 Offers More Networking Opportunities Than Ever

Although vendor connections and education sessions are a huge part of the #TotalTech23 value proposition, the 200-plus influencers in attendance will also be there to network.
Article ControlDesignHVAC/IAQLightingMarketsNewsOutdoors

Modern Forms Smart Fans by AiSPiRE Debut at CEDIA Expo 2023

WAC Lighting integrator-focused lighting fixtures company AiSPiRE launches smart fans lineup from sister brand Modern Forms during the recent CEDIA Expo in Denver.
Article Business SupportCE Pro SummitCommercialEventsNews

Total Tech Summit 2023 Offers More Networking Opportunities Than Ever

Although vendor connections and education sessions are a huge part of the #TotalTech23 value proposition, the 200-plus influencers in attendance will also be there to network.
Article Audio/VideoBuildersBusiness SupportControlDesignHome TheaterLightingMotorized ShadesMultiroom AVSpeakers/SubwoofersWellnessWhole-House Systems

Beemer Smart Home: From House Guests to Satisfied Customers

Based in affluent and design-savvy suburban Seattle, Beemer Smart Home welcomes customers and collaborators like treasured house guests.

SHOW NEWSLETTER

Sign Up

CE Pro

Subscribe Sign Up

Content Types

News
Products
Projects
Companies
Downloads
Webcasts
Podcasts
Events

Specials

CEDIA EXPO
CE Pro 100
CE Pro Summit
Awards Programs

Company Info

About
Contact Us
Customer Service
Advertise with Us

Subscribe

Magazine
Newsletters
Digital Edition

Connect

Twitter
Facebook
LinkedIn
YouTube
RSS Feed

Categories

AUDIO/VIDEO
AV Accessories
AV Racks
Amplifiers/Receivers
Cabling
Displays
Furniture
Mounts/Lifts
Multiroom AV
Projector Screens
Speakers/Subwoofers
Wireless AV
CONTROL
Central Vac
Energy/Power
Interfaces/Devices
HVAC/IAQ
Lighting
Motorized Shades
Whole-House Systems
NETWORKING
Cellular
Devices/Equipment
Wireless
Wiring/Installation
SECURITY
Access Control
Alarms/Sensors
Services/Platforms
Surveillance Cameras
BUSINESS SUPPORT
Associations/Buying Groups
Distributors/Reps
Operations
Recurring Revenue
Research
Sales/Marketing
Software/Services
Tools/Testers
MARKETS
Builders
Commercial
Design
Europe
Outdoors
Wellness
FOLLOW US ON
  • Follow
  • Follow
  • Follow
  • Follow
  • Follow
  • Follow

© 2023 Emerald X, LLC. All Rights Reserved.

  • ABOUT
  • CAREERS
  • AUTHORIZED SERVICE PROVIDERS
  • DO NOT SELL MY PERSONAL INFORMATION
  • TERMS OF USE
  • PRIVACY POLICY