The retail chain’s stock price is up more than 6% in pre-market trading after it beat the Street’s earnings estimates in its report on the otherwise dreary quarter. Best Buy generated net earnings of $294M in the three months ending February 1, up from a $379M loss in the same period last year, on revenues of $14.5B, -3%. The revenue number was lighter than the $14.7B that analysts anticipated. But adjusted earnings from continuing operations of $1.24 a share beat expectations for $1.01. CEO Hubert Joly had the good grace not to celebrate the results from a quarter where cost cuts compensated for declining traffic, intense price competition, and — with an unusually late Thanksgiving — fewer shopping days than Best Buy had in 2012. With sales down 1.2% at domestic stores open at least a year, the company “cannot be satisfied” with its performance, he says, as it continues with his Renew Blue campaign to stabilize the electronics chain that has struggled to keep up with online competitors led by Amazon and big box retailers led by Walmart. “Our Renew Blue transformation is a multi-year journey, and while it is off to an encouraging start, it is still in the early stages.” In Q4 entertainment software accounted for 11% of total domestic revenues, down from 12% last year, while consumer electronics fell to 32% from 33%. But computing and mobile phone products picked up the slack, increasing to 46% of sales from 44%.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.