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Best Buy’s web sales grow by 14% in 2011
The web now accounts for 5% of total sales.
Topics: 2010 e-commerce sales, 2010 earnings, 2010 financials, Best Buy, Best Buy 2010 earnings, Best Buy 2010 financials, Best Buy Co., Brian Dunn, Q4 2010, Q4 2010 earnings, Q4 2010 financials, Top 500, web sales growth
It was a different outcome for e-commerce and stores for Best Buy Co. in fiscal 2010, with a healthy increase in web sales partly offsetting a decline in comparable-store sales in the world of bricks and mortar.
For the year ended Feb. 26, Best Buy reported:
- Web sales of $2.5 billion, up by about 14% from $2.2 billion in fiscal 2010.
- Total sales were $50.3 billion, a 1% increase from about $49.7 billion.
- Domestic sales of $37.2 billion, down by 0.2% compared with $37.3 billion.
- International sales were $13.1 billion, up by 5.6% from $12.4 billion.
- Comparable-store sales, including web and call center, declined year over year 1.8%.
- Net income was $1.27 billion compared with net income of $1.32 million in 2010.
Internet Retailer calculates the web accounted for 5% of total sales in 2011 compared with 4.4% in 2010.
“Overall demand for key consumer electronics products was a challenge for the industry last year,” says Brian Dunn, CEO of Best Buy, No. 10 in the Internet Retailer Top 500 Guide. “We accomplished several key initiatives during the year that helped to both partially mitigate these challenges and build critical capabilities for profitable growth such as continued growth in connections, actions taken to enhance our multichannel efforts including online.”
Growth was attributed to the company’s mobile connections business, which encompasses sales of subscriptions to voice, broadband and video service offerings. Best Buy did not break out mobile sales.
Best Buy did not break out web sales for the fourth quarter, but the company did report:
- Total sales of about $16.3 billion, a 2% decrease from about $16.6 billion in Q4 2010.
- Domestic sales of $12.1 billion, a year-over-year 4% decline from about $12.6 billion.
- International sales of $4.1 billion, up by 5.1%% from $3.9 billion.
- Comparable-store sales, including web and call center, declined 4.6%.
- Net income of $651 million compared with net income of $779 million in the prior year quarter.
Q4 results include $222 million in restructuring charges attributed to updating international operations to enhance returns and to improve supply chain efficiency in its domestic business, the company says.