Best Buy has reported strong third-quarter financial results due to an uptick in online and domestic sales.
On Tuesday, the US retail giant released its Q3 earnings (statement), (.PDF) reporting revenues of $11.8 billion and basic earnings per share (EPS) of $1.48 (non-GAAP diluted EPS $2.06). Net income is reported as $391 million.
In Q2, Best Buy reported revenues of $9.91 billion and net income of $432 million.
In the second quarter, published in August, Best Buy also reported an online sales hike of 242.2% which contributed 53.1% of domestic revenue. In the latest quarter, Best Buy says online sales have increased by 173.7%. Online revenue, as a segment of domestic revenue, increased to approximately 35.2% versus 15.6% last year.
Domestic sales over the quarter rose by 22.6% year-over-year. Domestic revenue is reported as $10.8 billion, whereas international revenue accounted for a further $1 billion.
For the past nine months, ending October 31, 2020, Best Buy has reported a net income of $982 million.
Best Buy has faced restructuring charges of $111 million in the third quarter due to the decision to withdraw from Mexico.
"From a profitability standpoint, our better-than-expected sales resulted in significant operating income rate expansion and earnings growth," commented Corie Barry, Best Buy CEO. "The current environment has underscored our purpose to enrich lives through technology, and the capabilities we are flexing and strengthening now will benefit us going forward as we execute our strategy."
The retail giant has authorized a quarterly cash dividend of $0.55 per common share. The chief executive added that Best Buy intends to resume a share repurchase program in the fourth quarter due to continuing, strong sales rates.
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