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Best Buy Sales, Profits Grow in Q2

Best Buy delivered unexpectedly strong Q2 results, riding a fourth straight quarter of U.S. sales growth.

Net revenue reached $8.528 billion for the three months ended Aug. 2, compared to $8.459 billion in the year-ago period. The total was higher than Wall Street’s expectations of $8.29 billion.

Same-store sales were up a robust 2.7 percent in the quarter and domestic revenue grew by 3.9 percent over the year-ago quarter.

Operating income as a percentage of revenue rose to 3.4 percent from 2.7 percent last year.

The nation’s largest consumer electronics chain cited stronger demand for major appliances, TVs and higher average sales prices for smartphones, while economic indicators such as job growth and low fuel prices have restored some consumer spending on big-ticket items.

Domestic online revenue of $676 million increased 17 percent year-over-year primarily due to increased traffic and higher conversion rates, the company said. As a percentage of total domestic revenue, online revenue increased 90 basis points to 8.6 percent versus 7.7 percent last year.

“We believe these better-than-expected second quarter results are affirmation that our strategy of offering advice, service and convenience at competitive prices is paying off,” Best Buy CEO Hubert Joly said in a statement.