Best Buy Q2 numbers boosted by European stores

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Best Buy Q2 numbers boosted by European stores

Simon Quicke

The expansion into Europe has already filtered into Best Buy's results with the US retailer planning to open more outlets in the UK this year.

The positive impact of Europe, which constitutes three stores and a relationship with Carphone Warehouse, has been highlighted in the retailers Q2 results for the three months ended 28 August.

Revenue increased barely year on year to $11bn and net earnings rose from $158m to $254. Product segments including TVs and entertainment software were slow and the retailer was hit by the impact of the iPad.

"The decline [in its domestic market share] was primarily driven by the impact of lost traffic associated with constrained inventory during the initial iPad launch which adversely impacted traditional mobile computing traffic, the continued decline in entertainment software and moderating market share gains in home theater due to last year's digital conversion," the company stated.

But things were better when it came to talk of its operations in Europe with the outlets it has opened this year contributing to the numbers.

"Best Buy Europe reported a comparable store sales gain of approximately four percent for the fiscal second quarter on strong demand for smart phones," it stated.

Best But CEO Brian Dunn said that a lot of its efforts were being put into a connected worlds strategy selling broadband, phone and TV connections to customers.

The retailer has opened stores in Thurrock, Merry Hill and Hedge End and is planning to add Aintree, Derby and Croydon to that list before the year is out.


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