Best Buy’s Earnings, Revenue Slide in Q1

Best Buy’s Earnings, Revenue Slide in Q1

Even with online sales up, the company’s revenue fell in the quarter.

Best Buy’s first quarter earnings report revealed the company’s revenue has decreased 6.3 percent from 2019, dropping to $8.562 billion. That’s compared to revenue of $9.142 billion in the same quarter last year.

“The strong sales retention is a testament to the strength of our multi-channel capabilities and the strategic investments we have been making over the past several years,” Best Buy CEO Corie Barry said in a statement.

The Richfield-based electronics retailer noted that its domestic online sales skyrocketed 155.4 percent to about $3.34 billion. That tracks with an uptick in online shopping during the pandemic. (Target’s first-quarter earnings told a similar story.)

“In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81 percent of last year’s sales during the last six weeks of the quarter, even though not a single customer set foot in our stores,” Barry said.

The company’s net earnings fell to $159 million, versus $265 million in the same quarter last year.

“As challenging as the current situation is, I am certain Best Buy will remain a strong, vibrant company that is well positioned to deliver on our purpose and thrive in a new and different environment,” Barry said.

The company’s earnings per share fell to 61 cents, down from 99 cents a share last year.

“As a result of the ongoing uncertainty related to Covid-19, we suspended all FY21 financial guidance on March 21 and are not providing guidance today,” Best Buy CFO Matt Bilunas said in the statement. “We remain thoughtful about managing our profitability and liquidity, balancing our short-term decisions to navigate this unprecedented situation while preserving the elements of our strategy that will ensure we remain a vibrant company in the future.”