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Web sales shine for Best Buy in Q4
Sales on BestBuy.com increased nearly 26% during the quarter, while store sales slipped, the retail chain says today.
Best Buy Co. Inc. credits higher average order values, improved product availability, increased web traffic and higher web conversion rates for helping spur year-over-year web sales growth of 25.8% during the fourth quarter of its fiscal 2014. That online growth is particularly striking because overall sales for the consumer electronics retailer slipped 3.0% during the quarter.
The retail chain says it booked $1.57 billion in sales on the web during the three months ended Feb. 1. Best Buy did not today release its prior-year Q4 web sales number, but said last year that it was $1.30 billion. That would be a year-over-year increase in web sales of 20.8%, well below the 25.8% increase the retailer reported today. Best Buy did not immediately return an inquiry requesting a clarification on what is behind the difference.
Web sales accounted for 10.85% of total Best Buy sales of $14.47 billion during the fourth quarter, up from 8.7% a year ago, the retailer says. The 8.7% calculation is based on the previously released $1.3 billion web sales number and the Q4 2013 data included in today’s earnings release.
Best Buy says web sales for all of fiscal 2014 increased 19.8%. It did not provide a full-year total for web sales. Based on numbers previously released by Best Buy in its earnings reports, the fiscal 2014 year total would be $3.04 billion.
Hubert Joly, Best Buy president and CEO, also noted that the retailer now ships online orders from more than 1,400 Best Buy stores; that’s up from about 400 at the close of Q3. Best Buy launched the ship-from-store program in 50 stores in Q2.
For the three months ended Feb. 1, Best Buy, No. 10 in the Internet Retailer Top 500 Guide, reports:
• Total revenue of $14.47 billion, a decrease of 3.0% from $14.92 billion the same period a year ago.
• Online sales of $1.57 billion, which Best Buy says is up 25.8% from a year ago.
• Domestic revenue, which includes web sales, totaled $12.30 billion, down 1.7% from $12.52 billion a year ago.
• International revenue totaled $2.17 billion, down 9.6% from $2.40 billion a year ago.
• Domestic comparable-store sales were down 1.2%. Best Buy includes web sales in its domestic comparable-store sales calculation. International comparable-store sales were down 1.7%, an improvement from a 12.6% decline a year ago.
• Net earnings of $293 million, up from a net loss of $409 million a year ago.
For the full 2014 fiscal year ended Feb. 1, Best Buy reported:
• Total revenue of $42.41 billion, a decrease of 3.4% from $43.91 billion in fiscal 2013.
• Net earnings of $532 million, up from a net loss of $249 million in fiscal 2013.