It was an excellent day for Best Buy Co Inc (NYSE:BBY) as its shares rallied up 7% after announcing third quarter 2015 financial results. The biggest electronics retailer of the United States surpassed market profit expectations while increasing revenue for the quarter.
The electronics retailer announced net revenues of $9.4 billion for the quarter with non-GAAP EPS of 32 cents, which is much higher than the EPS of 18 cents in the year ago period. Best Buy Co Inc (NYSE:BBY) reported comparable sales growth of 3.2% in the domestic market and 21.6% in its comparable online sales. Higher comparable sales pushed the domestic revenue to $7.99 billion with 2.3% growth from the previous year quarter.
Best Buy is facing immense pressure from online retailers including Amazon.com, Inc. (NASDAQ:AMZN) and the company initiated Renew Blue initiative in 2012 under which, the retailer cut down jobs at every single level. Best Blue has removed multiple management layers, closed some stores, and paid attention towards increasing its cash reserves to turn around the financial condition. Best Buy Co Inc (NYSE:BBY) has faced continuous decline in its revenue over the last seven quarter.
The retailer surpassed market profit expectations of $0.25 per share with $9.33 billion in revenues, as per Thompson Reuters I/B/E/S.
While talking about the sales of current quarter, Sharon McCollam, CAO,CFO, and EVP of Best Buy, said,
“As Hubert remarked, the sales trends we are seeing in our business as we enter the fourth quarter are encouraging from a top-line perspective. But to drive these results, similar to Q3, there are internal and external factors that we believe could put pressure on our operating income rate.”
The shares of Best Buy Co Inc (NYSE:BBY) have decline 4.66% year-to-date currently trading at $38.02%. The reforms and increasing online sales of the company might help it revive the declining quarterly revenues.
This article has been written by Prakash Pandey.