Domestic segment’s performance
Best Buy (BBY) generated revenue of $9.14 billion in the first quarter of fiscal 2020, which ended on May 4. The company’s revenue grew 0.4% on a year-over-year basis and was in line with analysts’ estimates. Best Buy’s same-store sales increased 1.1% in the first quarter of fiscal 2020 compared to its growth rate of 7.1% in the first quarter of fiscal 2019.
Best Buy’s Domestic segment’s revenue rose 0.8% to $8.48 billion as same-store sales growth of 1.3% and a revenue contribution from its GreatCall acquisition were partially offset by the impact of the closure of 105 Best Buy Mobile and 12 large-format stores last year. Appliances, wearables, and tablets were the categories that performed well in the quarter, while the company experienced lower sales in the entertainment category.
Domestic online revenue increased 14.5% on a comparable basis to $1.31 billion driven by higher traffic and increased average order values.
Lower international revenue
Best Buy’s International segment’s revenue fell 5.2% to $661 million due to currency headwinds and a fall of 1.2% in same-store sales in the first quarter. Its same-store sales were adversely affected by its Canadian operations.
Guidance for fiscal 2019
Best Buy didn’t revise its previously issued revenue guidance for fiscal 2020. Best Buy expects its fiscal 2020 revenue to be in the range of $42.9 billion–$43.9 billion and its same-store sales growth to be in the range of 0.5%–2.5%. Best Buy’s guidance reflects an expected cyclical slowdown in the console gaming category and a continued mature phase in the phone category.
Categories such as TV, smart home, and services are expected to drive Best Buy’s top line growth.