Best Buy Q2 Net Profit Drops - Quick Facts

(RTTNews) - Consumer electronics retailer Best Buy Co., Inc. (BBY) reported a significant fall in second-quarter net earnings attributable to shareholders to $146 million, or $0.42 per share, from $266 million, or $0.77 per share, in the prior-year quarter.

For the quarter, non-GAAP earnings per share from continuing operations totaled $0.44, versus $0.32 reported a year back. The company said the ongoing benefits of it's Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On average, 26 analysts polled by Thomson Reuters expected earnings per share of $0.31 for the quarter. Analysts' estimates typically exclude one-time items.

The Richfield, Minnesota-based retailer, also known as the 'big blue box' because of the prominent design on Best Buy stores, recorded quarterly revenue of $8.9 billion for the 13-week second quarter, down from last year's $9.27 billion. Analysts estimated revenues of $8.99 billion for the quarter.

The company said in a statement: "On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%4, in line with our Domestic comparable sales decline of 2.0%."

Since its first-quarter fiscal 2015 earnings release, Renew Blue annualized cost reductions have increased an additional $40 million, bringing the total Renew Blue annualized cost reductions to $900 million.

Sharon McCollam, Best Buy EVP, CAO and CFO, commented, "... absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters."