Photo: By Ron Dauphin on flickr
Shares of Best Buy are up over 5% in pre-market trading thanks to earnings that blew away expectations.EPS of $1.98 came in well ahead of estimates of $1.85.
The company is citing brisk business in the mobile space for its solid number.
Bear in mind that in December, Best Buy missed earnings big time, and there was a whole lot of handwringing about how the CONSUMER WAS DEAD and whatnot.
We suspect that the naysayers who said that last time won’t be turning around saying the consumer is back.Just a guess.
All that being said, the old-school consumer electronics biz is clearly hurting:
The Domestic segment experienced a low double-digit decline in entertainment hardware and software, as well as TVs, as current consumer demand in new television technologies had not yet emerged as a significant revenue driver. The Domestic segment also experienced a mid single-digit comparable store sales decline in mobile computing driven primarily by notebook computing as the company lapped significant growth last fiscal year due to the launch of Windows 7, partially offset by growth in new tablet computers. These declines were partially offset by a low double-digit comparable store sales increase in mobile phones, driven primarily by an increase in smart phone sales, as well as a high single-digit increase in Services and a mid single-digit increase in Appliances. The company also noted that its Domestic online revenue increased 11 per cent in the fiscal fourth quarter versus the prior-year period.