US retailer Best Buy reported revenues for its fiscal third quarter to October up 21 percent year-on-year to USD 11.85 billion, driven by demand for home working and entertainment products during the pandemic. The company's adjusted operating margin improved to 6.1 percent from 4.2 percent a year ago, and net earnings rose to USD 1.48 per share from USD 1.10.
Best Buy said it made a successful shift to digital sales, offsetting the drop in foot-fall in stores. In the US, comparable sales rose 22.6 percent, with growth in most product categories. The biggest demand was in computing, home theater and appliances, partially offset by a decline in mobile phone sales.
Domestic online revenue jumped 174 percent year-on-year to USD 3.82 billion, equal to 35.2 percent of total sales in the US versus 15.6 percent last year.
International revenue also improved 25.4 percent, to USD 1.0 billion. The increase was primarily driven by comparable sales growth of 27.3 percent, offset by negative currency effects. Best Buy also confirmed its decision to exit the Mexican market and took USD 111 million in restructuring charges for that and other organisational measures during the third quarter.
Best Buy declared a quarterly dividend of 55 cents per share and said it would resume its share buyback during the fourth quarter.
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