Best Buy Co BBY today reported revenue for the five weeks ended Dec. 31, 2011,
of $8.4 billion, which was flat compared to the prior-year period and
included a comparable store sales decline of 1.2 percent.
"We built off of share gains in the third quarter to deliver December
sales that we believe compared favorably to the retail CE industry,"
said Brian J. Dunn, CEO of Best Buy. "Based on our performance in
December we continue to expect to achieve our annual guidance, despite
customer traffic that was lower than expected until the last week before
Christmas, which resulted in December revenue that was slightly lower
than our expectations. The actions we have taken during the year to
improve our performance online and in key connectable products such as
tablets, eReaders and smart phones continued to deliver strong growth in
December. I want to thank our employees for their significant dedication
to serving our customers during this key holiday period."
The company's Domestic segment generated $6.5 billion in revenue for
fiscal December, an increase of 0.4 percent when compared with the
prior-year period. The Domestic segment's revenue performance was driven
by the addition of new stores in the past 12 months, partially offset by
a comparable store sales decline of 0.4 percent. Domestic segment areas
of comparable store sales growth included tablets and mobile phones
within the Computing & Mobile Phones revenue category, eReaders within
the Consumer Electronics revenue category, and the Appliances revenue
category. Tablets and eReaders each delivered low triple-digit
comparable store sales gains during the month. Mobile phones had a 20
percent comparable store sales increase during the month, driven by
strong smart phone sales. These increases were more than offset by
comparable store sales declines in other areas, including gaming within
the Entertainment revenue category and digital imaging within the
Consumer Electronics revenue category. Gaming and digital imaging both
experienced low double-digit declines in comparable store sales. The
company noted that televisions experienced a mid single-digit comparable
store sales decline within the Consumer Electronics revenue category.
The company also noted that overall Domestic segment inventory levels
finished fiscal December in line with its expectations.
The Domestic segment online channel delivered a 26 percent revenue
increase compared to the prior-year period, driven by a strong traffic
increase and momentum from share gains achieved in November.
The International segment's fiscal December revenue totaled $1.9 billion,
a decrease of 1.7 percent versus the prior-year period. The revenue
decline was driven primarily by a comparable store sales decline of 4.3
percent and unfavorable fluctuations in foreign currency exchange rates,
partially offset by the addition of new stores in the past 12 months.
The International segment comparable store sales decline was driven by
comparable store sales declines in our stores in Canada and Europe.
Sales results for all countries in the International segment other than
Canada are reported on a two-month lag.
Company Reaffirms Fiscal 2012 Annual EPS Guidance Range
The company is confirming its annual adjusted diluted EPS guidance in
the range of $3.35 to $3.65 as previously disclosed in its press release
dated December 13, 2011. This guidance includes the estimated impact
from fiscal 2012 share repurchases and excludes the gain on the sale of
investments and previously announced charges, which are comprised of the
purchase of CPW's share of the Best Buy Mobile profit share agreement, a
non-cash impairment charge to reflect the write-down of Best Buy Europe
goodwill, restructuring charges (primarily associated with U.K. big-box
store closures) and other related charges.
The company's annual guidance reflects basic EPS loss calculated in
accordance with accounting principles generally accepted in the U.S.
("GAAP") in the range of ($3.52) to ($3.17). This loss is primarily
driven by charges attributable to Best Buy outlined above which total
approximately $2.6 billion in fiscal 2012. Please see table titled
"Reconciliation of Non-GAAP Guidance" attached to this release for
further details.
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