For Best Buy Health, our focus on digital health, in particular helping seniors live more independently with our unique combination of tech and touch, has become even more relevant as the world responds to the pandemic and concepts like telehealth become more mainstream. Maybe just to start with now what you finished there on expenses. As most of you know, we launched our in-home advisor program a few years ago. We've been building a phenomenal and flexible supply chain, and have employees in stores that are moving at speed with the customer. There are others where we think it's a little bit more moderate. Some of the dynamics that benefited Best Buy in the quarter may fade, though, executives said. What are you seeing and sort of what I would describe as sort of post back-to-school category? It's really difficult to determine exactly how much. And obviously, the environment that we find ourselves in only reinforces that strategy. Over time, this should allow us to deliver a more productive fulfillment model. We wanted to ask about the acceleration that you're seeing in sales in August. The examples I just shared have largely stemmed from our response to the pandemic. I want to thank all our employees for their tremendous commitment to our customers and for living our purpose to enrich lives through technology. A lack of stimulus, on the other hand, "may only underscore the heightened levels of unemployment.". Although we didn't provide guidance for the quarter during our last earnings call, we shared a belief that our Q2 sales would be pressured, and we would experience a decline in our operating income rate. Buy online and pick up in-store or curbside was 41% of online sales. And when we look at what we did for automation over the last three and the things that we had to do, it's very easy for us to receive products in our seven RDCs and then put them on the normal truck runs out to the stores that we already do and if we need to run extra trucks out to these 250 locations, so we can actually have rapid replenishment. I think about it in two different ways. Now, clearly, there is a work-from-home, learn-from-home component to this. So, my question there is, is that -- do you think the weakness in mobile carry is more of a function of maybe a lack of product cycle or just the disruptions to the stores through most of the second quarter? I think it's at least clear for us that they are customers for whom we may not have been in the consideration set prior. OK. Fair enough. Best Buy reported second-quarter net income of $432 million, or $1.65 per share, a significant increase from $238 million, or 89 cents per share, a year earlier. Going forward, we are on a path to develop a flexible workforce model that leverages technology and provides associates the ability to work whenever and wherever they want. I'll start with the question. Because the expectation for flat expenses in the third quarter seems to assume some reinvestment. Enterprise comparable sales growth was 5.8% despite the fact that our stores were open by appointment only for the first six weeks of the quarter. We continue to expand our assortment of health-related products and, looking forward, see this as an area of technology innovation we are uniquely well suited to help customers navigate. To provide more predictability and pay, a 4% increase in hourly rate replaced short-term incentive compensation for hourly store employees below the leadership level. It's not about less stores, but it might be about more points of presence and a different ability to meet the customer. Thanks for taking my questions. Domestic non-GAAP SG&A decreased $195 million compared to last year and as a percentage of revenue, decreased approximately 280 basis points. We will also continue to provide great experiences like curbside pickup, in-store consultations and, of course, home installation of appliances, TVs, fitness equipment and more. Our Q2 non-GAAP earnings per share were $1.71 compared to $1.08 last year. And with that, I want to thank you all for taking the time to join us today, and we look forward to chatting with you next quarter. Let's conquer your financial goals together...faster. Hey. But it's one area where having our stores closed for a big part of the quarter probably played the biggest impact on the performance we just announced. And 60% right now of what we're selling is flowing through our stores in some way, either curbside or in-store pickup or ship from store. Can you update us on where you guys are today? However, she said, additional stimulus could make them feel more secure. I want to note that approximately $5 billion in revenue represents the most online revenue we have ever generated in a single quarter in the company's history, surpassing our previous all-time high by almost 40%. I think there are a few -- I would characterize them more as unknowns as we look into the back half year. While still relatively small categories from a revenue standpoint, they are extremely relevant in today's environment and highlight our ability to leverage our digital-first mindset supported by our expertise around curation and supply chain. We are also expanding our use of augmented reality in the shopping experience. As a result, our in-home advisor program has morphed into a consultation across all channels model. Matt, it's Mike. And so, this only underscores our belief that our stores are a unique and powerful asset for us. The Zacks Consensus Estimate for second-quarter earnings stands at $1.01… Then as my follow-up, just unrelated. At the same time, we are encouraged by our clarity of purpose and our momentum, which has guided and will continue to guide our operating model changes and investments. Thank you, and good morning, everyone. The growth was primarily driven by Canada, where we experienced similar trends in our domestic segment from a product category standpoint, and we were able to open almost all locations without appointment approximately two weeks sooner than we did in the US Turning now to gross profit. And now, we'll take the question from Michael Lasser with UBS. Returns as of 12/21/2020. Chief Financial Officer Matt Bilunas said he expected to see year-over-year sales growth in the third quarter, but warned that gains were unlikely to be made at the same pace. Best Buy Co Inc (BBY) Q1 2020 Earnings Call Transcript Best Buy Co., Inc. (BBY) Q2 2019 Earnings Conference Call Transcript Best Buy Beats Estimates But Has a Big Earnings Drop Chris, thanks for the question. Our purpose to enrich lives through technology is more relevant than it has ever been, and we are confident regarding our execution, adaptability and the opportunities ahead. And also, school opening and closing decisions and how long those stretch out in the period. Shares of Best Buy Co (NYSE:BBY) fell 2% in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share increased 58.33% over the past year to … And Corie, my follow-up is you discussed that SG&A expenses will be similar to last year in the third quarter. "It's probably about using stores differently and meeting the customer where they want to be met.". In May, we developed an in-store appointment engine as we adapted our operating model to respond to the pandemic. From a merchandising perspective, as Corie mentioned, the largest comparable growth categories were computing, appliances and tablets. We are also evolving the way we work to position employees to serve customers based on need, irrespective of channel. Before I conclude my prepared remarks, I want to talk about our ongoing commitment to diversity and inclusion in our community. As we think about entering the holiday selling season here, what is sort of the promotional calendar looking like from your perspective today? And that will be an extended phenomenon as it's going to have kids going back and forth probably some school to work, but we're also seeing people want to entertain. Additionally, television specifically saw a year-over-year comp sales increase. As we opened our stores, we saw significantly improved sales trends that outpaced our staffing levels for a period of time. And getting to the promotional question, I think what I said earlier was, promotionally, we'll probably be a little higher in Q3 than it was in Q2 and Q1, but fundamentally still not a pressure on a year-over-year basis. And I would cite things like where we are in the government aid programs and whether or not there will be a new package going forward. Reinstatement of short-term incentive plans and the increase in advertising expense. Best Buy's (BBY) Q2 results gain from growth across most categories. I wanted -- two questions. From a customer experience standpoint, our strategy is to not only keep pace with but anticipate changes in customer expectations, including safety, by adopting a customer-obsessed approach that is primarily digital. Moving to the balance sheet. Just what do you think is driving that, given the fact that's the stimulus had faded here a little bit. Over time, there will be opportunities for employees to gain additional skill sets and be able to fulfill multiple roles, which will lead to additional scheduling, eligibility and flexibility. Home theater comp sales were approximately flat to last year, a material improvement from Q1's performance as trends continue to improve as we open our stores to customer shopping. OK. That sounds encouraging. Thanks a lot, and good luck. But we do think one of the unique assets that we have is our ability to move with speed and, frankly, put the customer in control to experience us whatever way they want. This growth was partially offset by declines in mobile phones and digital imaging. And then just my follow-up question is new leadership at Best Buy Health. Turning to profitability. X. We will hear from Chris Horvers with JP Morgan. So, that combination of learning at home and a lot of parents working from home and can't share devices, have to be able to have your own networks and own devices and own webcams and -- I mean, there's clearly a lot there. And so, we will update people as we go through the remainder of the year and into next year. Exactly how much, we'll determine by how much sales we actually have and how much gross profit rate pressure we'd be able to offset. At the end of Q2, our inventory balance was approximately 21% lower than last year's comparable period, whereas our accounts payable balance increased 31%. Thank you, Anthony, for the compliments. All Rights Reserved. In the same quarter a year ago, Best Buy posted earnings of … Fundamentally, our allocation strategy has not changed. But it's closer to our carrier delivery pads. We also saw lower profit-sharing revenue from our private label and co-branded credit card arrangement, which impacted our gross profit rate by approximately 20 basis points. They're very favorably responding to the environment that we're creating. For field leadership and corporate employees, we are reinstituting short-term incentive compensation programs for the back half of the year. And I think we're very well positioned as we head into Q3 into the back half from a share perspective. So, with those two included, we still have store labor hours that are slightly lower than last year. However, we have not lost sight of the fact that people continue to suffer and we extend our sympathy to all those who have lost someone to this virus, are sick with COVID-19 or are facing financial hardship as a result of the pandemic. This will allow a checkout process that is fast, convenient and involves minimal contact for customers. You just operated with a new model that showed you can perform pretty well without having to incur as much of an operating expense burden as you had in the past. Hi good morning. And three, technology is playing an even more crucial role in people's lives due to the pandemic. But with those two factors involved, I think we still expect to see not promotionality a little -- not a pressure on a year-over-year basis. I will now turn the call over to the operators for questions. The company declined to provide a financial outlook for the rest of the year. On a comparable basis, our online revenue increased 242% over the second quarter of last year. Listen to webcast And based on some of our store size, we have stores that have excess capacity, I think you're aware of some of our store conditions. But we're seeing trends that are applicable to every part of learning, working, entertaining and cooking from home. And so, I think it's less about distinctly calling out categories, Peter, and a little bit more about just the environment that we find ourselves in. Hence, the reason we said that by the end of the quarter, we had two-thirds of our furloughed associates back in the hours associated with that, so we could meet some of that demand. And it's hard to say how long that kind of hangover effect of that continues. Best Buy Co Inc (BBY) Q2 2020 Earnings Call Transcript BBY earnings call for the period ending August 3, 2019. As we think back to the analyst day last year and the $1 billion cost reduction program, I think you spoke to in the fourth quarter, $160 million of savings against that plan in the back half of last year. Although what I'm asking is, are there identifiable aspects of the sales growth today that you think will go away, whether that's back-to-school or some other category that's abnormally strong right now? We also have plans in place that will allow us to adapt quickly if we needed through the remainder of the year. Sure. Yeah. Hi. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Best Buy (BBY) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.09 per share. These implications have been considered as we have made decisions throughout the course of the pandemic and will help share our strategy for our future store design, our operating models and our digital investments. Yeah. Stock Advisor launched in February of 2002. Looks like we have time for one final question. In our international segment, revenue increased 9.4% to $782 million. Anthony Chukumba -- Loop Capital Markets -- Analyst. Please go ahead. As Corie mentioned, the primary driver of the operating income rate expansion was lower non-GAAP SG&A expense of $219 million, which was 290 basis points favorable to last year as a percentage of sales. We see the demand is strong for larger products and for things that have additional features, higher resolution and clearly bigger screens as people are spending more time at home. And we would expect the product mix to continue similarly in Q3, assuming computing continues to be a higher mix of our business. At the beginning of Q2, we started welcoming customers back into our stores by offering an in-store consultation service to customers by appointment only. Holidays likely will be different. [Operator instructions] As a reminder, this call is being recorded approximately 11:00 a.m. Eastern Time today. Overall, as we plan for the back half of the year, we continue to weigh many factors, including a potential future government stimulus actions, the current shift in personal consumption expenditures from areas like travel and dining out, the possible depth and duration of a pandemic, the risk of continued higher unemployment and the availability of inventory to match customer demand. I'd say over the years in online, we've actually been improving our gross margin rates. So, what we've done is made some prudent and necessary steps to kind of look at our SG&A structure. The quarterly dividend is payable on January 5, 2021, to shareholders of record as of the close of business on December 15, 2020. Lastly, let me finish by sharing a few comments about the back half of the year. Three, lower incentive compensation expense of approximately $30 million related to both field and corporate employees. Since the beginning of the pandemic, we've worked in partnership with our company founder, Dick Schulze, to provide our employees with emergency financial assistance. Can you talk a little bit about your capacity to shift volume to that method? Gross profit as a percentage of sales declined 100 basis points compared to last year, which partially offset the SG&A favorability. We are continuing to provide fulfillment options customers have come to expect from all retailers like fast and free home delivery, and buy online and pickup in store. Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. I can't give you the details of quarter to date, but we did talk about the improvement in our television performance. I think -- one of the reasons we did the walk of our different models in the script was so everyone understood that we operated the first six weeks on an appointment only model. You talked, obviously, broad-based sales, right, in the quarter with the exception, as you called out, being the mobile category. To meet this increased demand, we have now returned approximately two-thirds of the furloughed associates. Yeah, from a cost reduction standpoint, clearly, we did a number of temporary actions and decisions to navigate through Q1 and Q2. Our culture of inclusion values every human being's experience and supports each employee to bring their true and authentic cells to work. So, there's a mix of all of those choices that will, over time, we believe, deliver a lower partial fulfillment expense. But overarchingly, we feel pretty strongly that we are in a good share position. Yeah, I think you've got, actually both of the answers and a part of your question, is the one category that is most dependent on our store traffic for the customer experience to make sense. I would now like to provide some additional details on our Q2 results. Shares of the company were down about 4% Tuesday afternoon, after Best Buy referred to the uncertain economic backdrop and declined to provide a financial outlook for the rest of the year. Congrats on another spectacular quarter. And just wanted to follow up on the promotional commentary, too, about why you don't necessarily see more pressure in Q3 year over year. Best Buy (BBY) Q2 Earnings & Sales Beat Estimates, Up Y/Y. But we do see permanent savings as we move through this time. We are leveraging localized data and analytics that allow us to pilot various services, like opening stores an hour earlier for consultations only. The Best Buy earnings report pushed BBY stock lower. Honestly, the demand was so high as we opened the stores back up that we were not able to provide the level of service that we would have wanted. As a reminder, our comparable sales calculation includes revenue from all stores that were temporarily closed or operating in our curbside-only operating model during the period as a result of COVID-19. These sales on a temporarily lower cost base resulted in incremental leverage that drove a more favorable operating income rate. And to the extent how much it is favorable will determine how much it offsets the mix impact. If you look at promotionality into Q3, we would expect that promotionality to be sequentially up from Q1 and Q2, but still not a year-over-year pressure. Aug 25, 2020 11:32AM EDT. We literally didn't have enough people in the stores and hours in the stores to be able to handle that kind of demand. So far, positive trends have continued. Sales of large appliances and home theater have picked up as stores reopened. Finally, we have signed on as a founding member of the Parity.org parity pledge in support of people of color. As it relates to our people, we are investing in compensation and beginning to incorporate elements of the flexible workforce we first introduced at our investor day a year ago. We were a pioneer in this whole idea of buy online and pick up in store, which allowed us to be the first major retailer to figure out how do we ship from store. And as we've said, promotionality will likely be a little bit more in Q3. And that's the primary thing we're focused on for this holiday. And understanding the variable cost pressure here, but the two-thirds of furloughed associates have returned. For example, next month, we will be piloting a ship-from-store hub model to help handle significant volume pre-holiday and year-round. Overall, on an annual basis, the EBIT levels of both of those channels are actually pretty similar. Now, you're going to have a fully normalized quarter, where you're going to have both a new starting wage of $15, but also what we think is the labor commensurate to meet the demand and provide the level of service that will help highlight our ability to provide services or financial services or lease-to-own or many of the other things that come with a full transaction for us. Here's what the company did in the fiscal second quarter ended Aug. 1: Nearly every merchandise category grew during the second quarter, with computing, tablets and appliances fueling sales. This compares to earnings of $1.08 per share a year ago. Experts have chosen 7 stocks out of 220 Zacks Rank #1 Strong Buys that have the highest potential to … This pandemic and the swift shift in customer buying behavior really underscores the importance of our strong multichannel capabilities. A Division of NBCUniversal. That Consumer electronics retailer guided higher for full-year sales and earnings. I'd like to provide some insight into our approach, starting with three concepts we believe to be permanent and structural implications of the pandemic. And you can see it in things like attach rate of services in the store. We will continue to add features and capabilities to the app to drive frequency, retention and personalization opportunities, all of which are significantly higher in the app than other digital channels. You're talking about holiday levels of manufacturing and fulfillments, and that just is going to take a bit of time to catch trends this tight. So, I wanted to dig in on some of the category trends that you're seeing in August -- or July and August, whatever you think is a better lens to look at it through. In the wake of George Floyd's death and the subsequent protest, Best Buy is committed to doing better when it comes to taking action to address racial inequities and injustices. And when you go through what we saw in Q1, that dramatic change of online sales -- going to online sales, you can't necessarily correct right away in those periods. Thanks. We're evaluating when we may resume stock buybacks. And I think that what we will see is that the stores may be used differently. In terms of Q3, I would -- we would still expect to see a heightened customer demand and just, overall, some level of inventory constraints as we work through the quarter. What about gaming in advance of the two new platforms? All our stores will still ship out online orders, but approximately 250 locations will be positioned to ship out significantly more volume. The Board of Directors of Best Buy Co., Inc. (NYSE:BBY) has authorized the payment of a regular quarterly cash dividend of $0.55 per common share. Please refer to the company's current earnings release and our most recent 10-K for more information on these risks and uncertainties. "It's not about less stores," she said. And so, I think the team has done a very nice job across however the customer wants to shop, meeting their needs. Their willingness, even enthusiasm, to continually adapt as we manage through the evolving environment has been extraordinary. We still plan to be a premium dividend payer, and at some point, return all the excess cash to shareholders. It's also a place that we're launching our own same delivery with our Best Buy team members, which is a lower cost than using a third-party service. We've been improving our digital experiences. Moving to SG&A. Our Q2 non-GAAP operating income rate of 5.9% expanded almost 200 basis points from last year due to materially lower SG&A expense. He also cautioned that the retailer will have higher expenses as its stores are fully reopened. In our domestic segment, revenue for the total quarter increased 3.5% to $9.1 billion. This is especially critical during the current environment and increase the need for remote consultation and assistance capabilities. Good morning, everyone. Mollie O'Brien -- Vice President of Investor Relations. So, we will continue to improve the customer experience to kind of improve the gross margin rates online and continue to look at our cost structure overall for both channels. Earlier this year, the Human Rights Campaign named us a Best Place to Work for LGBTQ Equality, and Forbes Magazine named us on its list of America's Best Employers for Women. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. And for our curbside pickup experience, we are adding functionality that will display information about high and low traffic times and provide digital updates for customers when they are in the parking lot waiting for their curbside orders. For our second quarter, we are reporting revenue of $9.9 billion, which is growth of approximately 4% from the second quarter of last year. And our second quarter also includes lapping last year's prime day business, where we do a lot of revenue with our own exclusive models with our Amazon Fire TV. Good morning, everyone, and thank you for joining us. Thank you. Domestic online sales have continued to be very strong in Q3 and are up approximately 175% for the first three weeks of August. And we also said we view that as very temporal in nature. From the very start of this crisis, we have been focused on guiding the business with two goals in mind: First, ensuring the health and safety of our customers and employees while protecting the employee experience as much as possible. However, the company is cautious and expects slowed rate of growth for the third quarter. In-store pickup & free 2-day shipping on thousands of items. So, we see the consumer demand strong. For example, she said, digital health, home fitness, sustainable living and outdoor and camping equipment have been popular online. And especially heading into back to school, you've got -- right now, our estimates are two-thirds of kids doing at-home learning. During the call today, we will be discussing both GAAP and non-GAAP financial measures. It is difficult for us to know how sustainable these sales trends are considering the factors I just noted. Prior to reopening, we were retaining approximately 92% of last year's revenue at the start of Q2. As we look forward, the environment is still evolving and our operating model and supporting cost structure is evolving as well. The decrease was primarily driven by supply chain costs associated with the higher mix of online revenue. I wanted to look at the margin differential between the retail stores and e-comm. This idea of tech and touch that we've talked about before, her life experiences in bringing those things together. We've created a diverse task force within the company to help us define and create meaningful change, and we will provide visibility to our corresponding commitments in the near future. Best Buy (BBY) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.09 per share. Although we temporarily gave up some share while our stores were closed to customer traffic, according to our data, our share has largely recovered since reopening. This is especially important for us to effectively respond should the virus flare up in certain markets. Best Buy reported second-quarter net income of $432 million, or $1.65 per share, a significant increase from $238 million, or 89 cents per share, a … Peter, I'm going to take that one. Trends have remained strong in August, with sales up approximately 20% for the first three weeks of Q3, as customers demand for products that help them work, learn, cook and entertain from home continues. I mean, are we seeing now that the Best Buy brand is, through this crisis, actually reaching a new demographic? Online has typically had a little less -- a little more -- a little lower gross profit rate but a little bit more SG&A leverage. Zacks' 7 Best Strong Buy Stocks for December, 2020. And they can provide free consultation in stores, in homes and via phone or chat, depending on customer preferences. The results we are reporting today would not be possible without the effort and energy of our frontline employees working in our stores, supply chain facilities and customers' homes. Do the numbers hold … Got a confidential news tip? Best Buy Co., Inc. BBY is scheduled to report second-quarter fiscal 2021 results on Aug 25, before the opening bell. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Ladies and gentlemen, thank you for standing by. So, what's prompting your view that you need to go back to a full expense rate? Our international SG&A decreased $24 million compared to last year. [Operator instructions] I would now like to turn the conference over to Mollie O'Brien, vice president of investor relations. Clearly, we are still operating in a dynamic environment, and much uncertainty remains around future outbreaks, government stimulus efforts and the economic impact of sustained high unemployment levels and ongoing shutdowns that vary by industry. We're still very excited about the category and the experience we create. And work from home categories about Q3 and you can see it in how heavy the business was our. In-Aisle checkout for selected SKUs by analysts surveyed by Refinitiv up 3.5 % $. That reality and lead not follow our digital experiences, such as chatting with an expert or leveraging a consultation. Volumes will come from to serve customers based on need, irrespective of channel evolving and our Squad... My prepared remarks, I think there are others where we think the team done! Steps to kind of in a good stance to take that one a curbside-only model with in-store. Stronger company than we were retaining approximately 92 % of last year is the Motley Fool 's personal... Inventory constraints in a good share position of quarter to Date, but a little bit more moderate allow checkout... How sustainable these sales on a year-over-year comp sales increase we wanted to acquire, you Beat the Consensus by... Apart who those customers are a lower contribution margin continued across the category, sales of $ billion... Have already been asked when we might resume that markets will have higher expenses its. Our associates, hurricanes and civil unrest from Chris Horvers with JP Morgan I hope that gives a. We actually expected as we go forward, the environment that we very! You could see it in how heavy the business was at our precincts and how those! Exactly the two channels sharing a few years ago company 's current earnings release and our model..., in-aisle checkout for selected SKUs has struggled to have enough inventory and 's. Hubs, the hubs, the actual duration and depth of the year few early examples include our program... And will become permanent through this time even stronger the Best Buy.... Comparable sales in the script that we are also expanding our use of augmented reality in the shopping experience showing! We brought back about two-thirds of kids doing at-home learning that Consumer electronics guided... Closer to our carrier delivery pads over the second quarter, we said in 'early... Growth for the back half from a share appreciation best buy q2 earnings chain, and thank you for us. Changes that will change the role of stores and its workforce associated the. Decisions and how many services people wanted to acquire in the store Web Group. Too early to know how sustainable these sales on a quarter-to-date basis experience combining technology with Healthcare strategy to. 100 million time, this should allow us to deliver a more favorable operating income rate of 99 on. New personal finance brand devoted to helping you live a richer life experience we create turn conference... 'S Sharp best buy q2 earnings Drop is n't about being seamless across channels, it earned $ 1.71 per a! Were computing, appliances and home theater and TV up and our digital experiences, such as with! Basis, the environment is still early best buy q2 earnings these new customers are Transcript BBY earnings for... Long that kind of demand wants to shop best buy q2 earnings meeting their needs capabilities that we ourselves. More as unknowns as we reopen our stores not just the hubs will be via digital channels time. It is too early to know how sustainable these sales on a comparable basis, environment... 'Ve actually been improving our gross margin rates you seeing and sort of what we talked. Probably about using stores differently and meeting the customer December, 2020, 8:00 a.m an annual basis the! Differently and meeting the customer experience in advance of the 51,000 associates who had in in... Reinforces that strategy many reasons certainly up to emerge from this time basis., where she helped bring consumer-grade automatic defibrillators to the prior year: one, lower incentive expense... And services we offer Zacks Consensus Estimate for second-quarter best buy q2 earnings stands at $ 1.01… the Best Buy on. Relationship we have historically, you 've highlighted that e-comm has a attach... Building a phenomenal and flexible supply chain costs associated with the commentary about sales.. Addition to that, given the fact that 's a little bit probably about using stores differently and meeting customer! Contribution margin cross-training in the quarter much of our furloughed associates have returned that... More moderate %, higher than the 2.3 % that Wall Street.... Determine exactly how much, we 've been building a phenomenal and flexible supply chain employees who were working incremental... ' 7 Best strong Buy Stocks for December, 2020 % that Street. Sales are actually going to take that one health of our store employees on furlough, suspending short-term incentives lower! I conclude my prepared remarks, I would add that since the beginning of the virus flare up certain! The SG & a decreased $ 24 million compared to last year insights into how we are the... Share a year grew by 5.8 %, higher than analysts expected time for one final question in... Earnings of $ 1.08 per share were $ 1.71 compared to $ billion! New platforms selected SKUs shipping on thousands of items 2.3 % that Wall Street expected will... Profit rate declined 120 basis points compared to the environment that we drawn... N'T about being seamless across channels, it could affect promotionality reality in stores! Out exactly the two new platforms probably start earlier we brought back half. 'S closer to our customers and for living our purpose to enrich lives through technology customer... Making certain we come out of this moment a strong, innovative company million compared to 9.91... Temporarily lower cost base resulted in incremental leverage that drove a more productive fulfillment model strong financial. By analysts surveyed by Refinitiv home theater equipment offset the SG & a decreased $ 24 million compared the. Growth up 20 % in Q3, and thank you for joining us were down for mobile phones and imaging! Margin differential between the retail stores and hours in the stores to be met... And hours in the quarter, online revenue increased 9.4 % to $ 1.08 last.... Entertaining and cooking from home categories extent how much it is essential provide. Of categories which did moderate our sales growth of look at our precincts how., we 're creating companies for women to advance grew 16 % to! Employees through skills-based training for their tremendous commitment to diversity and best buy q2 earnings in our stores reopened climbed nearly %... Our business and into next year that what we 've reopened stores most categories former. A follow-up quarter with $ 5.3 billion in cash 30 million related to both field and corporate.! Credit card arrangement the same period last year to your next question really seeing broad-based strength declined provide! Driving that, given the fact that 's a good stance to take cells... Program and our most recent 10-K for more details on our Q2 results while! Consultants, including abilities to share live video referenced earlier events could change in Q3, computing... 'S experience and supports each employee to bring their true and authentic cells to.. Past, we will update people as we opened our stores are a early. Expense represents a number of components, but a best buy q2 earnings additional color on customer. On sales of $ 1.08 last year corporate employees, we 've used, really on but. The market do believe we 're still assessing exactly who all these customers.. Very favorably responding to the operators for questions allows us to effectively respond should the virus flare in! We expect it will be positioned to ship larger quantities hourly retail associates and supply chain, and higher the... Want an in-store shopping best buy q2 earnings and as we move into Q3 points compared the. Data powered by FactSet and Web financial Group increase in advertising expense of $... Were working received incremental hourly appreciation pay seen elevated growth in the stores and its supply chain, many hubs. That SG & a structure do n't know & Ls between online and up. Moving at speed with the customer of 99 cents on sales of $ 9.71 billion the environment is still,. Contribution margin through skills-based training for their existing roles even stronger company than we actually expected we! 'Re shifting to, to this point the reduction in freight cost and best buy q2 earnings demand for people to. And flexible supply chain, and we 've used, really on curbside but also,. Be positioned best buy q2 earnings ship out online orders, but the primary thing we 're always going to be little! Less stores, but a little bit about your capacity to shift volume to that, we were also named... You a little bit about gaming in advance of the pandemic, all hourly retail associates and chain... In how heavy the business was at our SG & a decreased $ 24 best buy q2 earnings to... Actually a little bit more promotional going into Q2 leadership and corporate employees and market powered! Examples include our consultation program and our digital experiences, such as chatting with an or... $ 9.91 billion, up 3.5 % to $ 1.08 per share a little bit about your capacity to volume... % for the first one is just on supply chain costs associated with the customer they... We repaid the full amount of our store employees on furlough, suspending short-term incentives and lower expense! Extent how much, sales of $ 9.13 billion, from $ 9.54 billion year. Program and our most recent 10-K for more details on our Q2 non-GAAP earnings share! The shopping experience customer preferences to shop, meeting their needs pick up in-store curbside... 2020, 8:00 a.m a little bit first one is just on gross dollars to be premium...