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Best Buy Reports Record Q2 Results, Plans Nationwide Rollout Of Membership Program

Best Buy’s domestic online sales dropped more than 28 percent in the second quarter after a 242 percent jump the previous year, but the company on Tuesday (Aug. 24) reported increases in its enterprise revenue, domestic revenue and international revenue.

Domestic revenue, which grew from $9.1 billion to $11 billion year over year, was led by the home theater, appliances, computing, mobile phones and services categories. Those increases helped the Minnesota-based retailer raise comparable sales expectations for the full fiscal year to between 9 percent and 11 percent.

“We are reporting record second-quarter results today, with comparable sales growth of 20 percent and operating income growth of 40 percent compared to last year,” said CEO Corie Barry in the company announcement.

The CEO noted that Best Buy just lapped “an unusual quarter” during which stores were limited to curbside pickup or in-store appointments for roughly half the quarter. Compared to two years ago, revenue is up 24 percent, she said.

Barry told investors and analysts on a conference call that Best Buy intends to expand the pilot of its membership program, called Best Buy Beta, which was launched last year. At the end of the third quarter, the program will be rolled out nationally in stores and online under the name Best Buy Total Tech, giving a wider swath of customers access.

“The goal of the program is for customers to find value in the benefits and use them often,” Barry said. “It is not designed to be a standalone margin-driving service offering, particularly in the near term.”

In the second quarter, customer demand for technology products and services during the quarter “remained very strong,” Barry said.

“Customers continued to leverage technology to meet their needs, and we are providing solutions that help them work, learn, entertain, cook and connect at home,” she said. “The demand was also bolstered by the overall strong consumer spending ability, aided by government stimulus, improving wages and high savings levels.”

Best Buy anticipates enterprise revenue between $51 billion to $52 billion in fiscal 2022 and revenue in the range of $11.4 billion and $11.6 billion for the third quarter of the fiscal year, ending in October 2021.

Related: Best Buy’s Delivery And Service Model Guides Easy Expansion Into Outdoor And Travel

In June, Best Buy announced plans to expand its product offerings into outdoor living and travel. The Minnesota-based retailer’s decision to start selling grills, patio furniture, fire pits and coolers represents a pivot aimed at getting ahead of the rebound in the travel sector.

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