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Best Buy Gets 242% Increase In Their Online Sales: Shares Remain Low

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The online sales of Best Buy increased by 242% in the United States. The company has never experienced such a high rate of online sales before. Although, sales of the stores grew only by 5.8% which were higher than the expected 2.3%.

Same-store sales were also higher as compared to the last two years for the company. The stores were open only for the first six weeks of the quarter. As per the fiscal second quarter which ended on August 1st, the company had the following statistics-

  • Earnings per share were $1.71
  • Revenue was $9.91 billion
  • Same-store sales growth was 5.8%

All of these statistics were higher than the expected ones. Second-quarter net income of the company was $432 million that comes to $1.65 per share. It was quite higher as compared to the previous year.

The Revenue of the company rose to $9.91 billion much higher than predicted by the experts. Sales mainly came from electronic supplies apart from mobile phones and home theatre equipment. Back to school supplies also benefited the company.

The responsibility of providing proper necessity is to the customer is quite high for Best Buy. The company have given back jobs to approximately 51000 employees who were on leave. The company is also struggling to have enough inventory.

The shares of the company were down to about 4% on Tuesday. The reason for this was some economic backdrop that the company is facing. It is said that these sales cannot be permanent and Best Buy further declined to give a financial outlook to the rest of the year.

Although, the company is definitely witnessing new and improved sales growth areas related to digital fitness. People are now buying digital health, home fitness, sustainable living and outdoor and camping equipment through online methods.

The representatives of the company are also sure that online sales will definitely witness an increase in the future also.

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