Best Buy Posts Surprise Increase in Quarterly Sales


Best Buy, owner of the biggest U.S. electronics chain, reported an unexpected increase in quarterly sales, helped by demand for appliances, TVs and mobile phones.

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The company's shares, which have lost 24 percent in the past six months, jumped 11.3 percent in premarket trading on Tuesday.

The company's revenue rose 0.8 percent in the second quarter ended Aug. 1, surprising analysts who expected a fall of 2 percent on average.

Best Buy has cut jobs, closed stores and streamlined its management structure in an effort to boost profit and margins and compete better with online and big-box retailers.

Improving job markets and low fuel prices has boosted consumer spending on big-ticket items such as TVs and other appliances.

Best Buy has exited operations in China and consolidated those in Canada, leaving it largely dependent on U.S. sales.

U.S. sales rose for the fourth straight quarter, accounting for nearly 93 percent of total sales.

Same-store sales in the region rose 2.7 percent, helped by demand for appliances and higher mobile prices.

Revenue rose to $8.53 billion in the quarter, compared with the average analyst estimate of $8.29 billion.

Net income attributable to shareholders rose to $164 million, or 46 cents per share, in the second from $146 million, or 42 cents per share, a year earlier.

Excluding items Best Buy earned 49 cents per share, beating analysts' average estimate of 34 cents.

Best Buy's shares were trading at $32.80 before the bell on Tuesday. Up to Monday's close, the stock had fallen 24 percent this year.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)