BestBuy.com is a growth engine for the consumer electronics retail chain. Best Buy Co. Inc. says online sales in the United States grew 22.3% during the three-month period ended Oct. 28, totaling $1.1 billion.
That percentage gain means Best Buy’s online sales increased by approximately $200 million, or equal to roughly two-thirds of Best Buy’s domestic growth across all sales channels in the quarter, which is the company’s Q3 for fiscal 2018. In the retailer’s last Q3, Best Buy reported $881 million in web sales; the company does not provide year-over-year comparable figures for web sales in earnings releases.
The retailer attributed the online growth to more web shoppers buying and spending more per order. Online now accounts for 12.7% of Best Buy’s U.S. sales, up from 10.8% a year ago.
The company says it expects to spend $750 million to $800 million on e-commerce and supply chain functions by the end the of this fiscal year, more than the $700 million it anticipated spending.
For the quarter ended Oct. 28, Best Buy, No. 10 in the Internet Retailer Top 1000, reported:
- Total revenue of $9.32 billion, up 4.1% from $8.95 billion a year earlier.
- Domestic sales (including $1.1 billion in web sales) of $8.49 billion, up 3.7% from $8.19 billion.
- International sales of $829 million, up 10.1% from $753 million. The company does not sell online in Canada or Mexico.
- Net income of $239 million, up 23.2% from $194 million.
For the nine months ended Oct. 28, Best Buy reported:
- Total revenue of $26.79 billion, up 3.4% from $25.92 billion.
- Net income of $636 million, up 24.1% from $621 million.
Best Buy does not report a running total for online sales in its earnings releases. Based on previously released figures, Internet Retailer calculates Best Buy generated $3.22 billion in online sales during the first nine months of its 2018 fiscal year, up 26.3% from $2.55 billion in the same period a year ago.Favorite