Retailer Best Buy Co reported better-than-expected second-quarter earnings, helped by strong international sales, and raised its full-year profit forecast, pushing its shares up about 5%. Best Buy said it benefitted from demand for notebook computers, flat-panel TVs, and video games, and said that it gained market share across its product lineup.
Net earnings came to US$250 million, or $0.55 a share, for the second quarter ended Sept. 1, up 9% from $230 million, or $0.47 a share, a year earlier. Revenue rose 15% to $8.75 billion. Sales at stores open at least 14 months, or same-store sales, rose 3.6%. International revenue rose 54% to $1.5 billion.
Same-store sales fell 7.1% in the appliance category. But same-store sales in Best Buy's services group, tied to computers and TVs, rose 5.3%.
Best Buy said it expects full-year earnings at the top half of its forecast range of $3 a share to $3.15 a share, an improvement from its previous outlook of $2.95 to $3.15. Same-store sales should rise near the midpoint of the previous forecast range of 3% to 5%.