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Best Buy sales are rising, but caution profits are slowing



Best purchase
Co.


BBY -6.91%

reported another quarter of rising sales as consumers continue to enjoy TVs and other devices, but warned that earnings growth in the current quarter slow down would invest in its operations.

Best Buy said that same-store stores rose 6.2% in the second quarter, the sixth quarter in a row. Online sales increased 10%, slower than in previous quarters. The chain has changed its fortunes in recent years by improving its e-commerce business and leveraging its more than 1

,000 stores in the US for online orders and services. [Tuesday] Executive executives raised their full-year earnings and sales targets on Tuesday, but said corporate profits would decline in the third quarter as the company raises investments.

"We continue to focus on managing the business for long-term success rather than ensuring a linear, quarterly operating return," said the Chief Financial Officer

Corie Barry

said.

Best Buy shares fell about 5% in pre-IPO trading. The shares rose by about 31% last year.

The company has shares in the electronics and home appliance markets as competitors such as RadioShack,

Hhregg
Inc.

and

Sears Holdings
Corp.

closed shops. Earlier this year, Best Buy announced it would close 250 smaller mobile phone stores in the US to focus on larger stores and support services. Last week, the company approved the acquisition of GreatCall Inc., the maker of Jitterbug mobile phones, for $ 800 million

The Minneapolis-based retailer made a profit of $ 244 million after $ 209 million in the second quarter Dollars known in the year before. Sales increased 4.9% to $ 9.38 billion.

For the third quarter, the company expects revenues of $ 9.4 to $ 9.5 billion

Thomson Reuters

of 9.49 billion dollars. The company posted adjusted earnings per share of 79 cents to 84 cents, compared to 92 cents estimated by analysts in a Thomson Reuters survey.

Best Buy said that sales in the same year will reach 3.5% to 4.5%. from the original leadership of flat to 2% growth. The retailer estimates adjusted earnings per share for fiscal year 2019 at $ 4.95 to $ 5.10 compared to previous guidance of $ 4.80 to $ 5.00 per share.

Write to Aisha Al-Muslim at [email protected]


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