Best Buy reports its financials for the second quarter

Best Buy Co. (NYSE: BBY) announces its second-quarter financials for the 2022 fiscal year. Domestic revenue decreased 13.1% to $9.57 billion. From a merchandising point of view, Best Buy had a sales decline in nearly all its categories. The main drivers were home theatre and computing.

The $2.97 billion domestic online revenue it recorded in this quarter represented a 14.7% decline. The company recorded a 22% domestic gross profit rate, which was lower than the 23.7% it recorded in the same quarter of the previous fiscal year.

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Financial highlights 

The company recorded $760 million in international revenue, which represented a 9.3% decline compared to what it reported in the same quarter of the previous fiscal year. The decline in international revenue was mainly driven by the 4.2% sales decline in Canada accompanied by the negative impact of roughly 420 basis points linked to foreign exchange rates.

It recorded a 23.4% international gross profit rate, which was also lower than the 24.3% it posted in the same quarter of the previous fiscal year. The decreased gross profit rate the company experienced was largely because of reduced product margin rates.

International SG&A was 19.7% of revenue, or 150 million, which was lower than the $160 million it reported in the last fiscal year.

Management statements 

Best Buy Chief Executive Officer, Corrie Barry, said:

I am incredibly proud of our teams as they continue to rise to the challenges of the past few years and I remain impressed with their ability to lead through the rapidly shifting business environment. Our comparable sales were down 12.1% as we lapped strong comparable sales growth last year of 19.6%.

The CEO continued:

We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth.