Best Buy Domestic Holiday Revenue Down 0.8% - Quick Facts

(RTTNews) - Best Buy Co., Inc. (BBY) reported Domestic revenue of $10.1 billion for the nine weeks ended January 2, 2016, a decrease of 0.8% from last year. The company said the decrease was primarily driven by a comparable sales decline of 1.4%, excluding the estimated 20-basis point benefit associated with the classification of revenue for the mobile carrier installment billing plans and the loss of revenue from closed stores. International revenue was $911 million for the period, a decrease of 26.1% versus last year.

Based on the holiday results, Best Buy updated fourth-quarter outlook. In the Domestic business, the company now expects: revenue decline of near 1.5% versus its previous expectation of near flat due to softer consumer demand in mobile phones and greater-than-expected declines in the NPD-reported categories; and a non-GAAP operating income rate decline of 10 to 15 basis points versus previous expectation of a rate decline of 20 to 35 basis points.

The company's Enterprise outlook includes: a revenue decline of near 4% versus previous expectation of a low single-digit decline; and a non-GAAP operating income rate decline of approximately 15 to 30 basis points versus previous expectation of a rate decline of 25 to 45 basis points. In the International business, the company's outlook has not changed.

From a tax rate perspective, the company now expects the non-GAAP effective income tax rate from continuing operations to be in the range of 34.5% to 35%, versus 34.2% last year, which is expected to result in a negative $0.01 to negative $0.03 year-over-year non-GAAP EPS impact in fourth quarter 2016.