Best Buy reports smaller-than-expected drop in Q2 LFL sales

Best Buy reported a near halving in profits for its fiscal second quarter amid a slump in sales, although the latter beat analysts' estimates in like-for-like terms.

Nevertheless, the consumer electronics retailer called attention to the fact that diluted earnings per share for the 13 weeks to 30 July were ahead by 40% on the same quarter of its 2020 financial year.

The latter covered the initial phases of the Covid-19 pandemic.

Of the recent operating environment, chief executive officer, Corie Barry, said: "As we entered the year, we expected the consumer electronics industry to be softer than last year following two years of elevated growth driven by unusually strong demand for technology products and services and fueled partly by stimulus dollars.

"The macro environment has been more challenged due to several factors and that has put additional pressure on our industry."

Net revenues fell by 12.8% to reach $10.33bn during the quarter just ended, alongside a 12.1% drop in LFL sales (FactSet: -12.6%).

Diluted earnings per share however plummeted from $2.90 in the comparable year ago period to $1.35.

As of 1433 BST, shares of Best Buy were adding 4.04% to $76.99.