With a boost from eCommerce orders, Best Buy Co. notched another quarter of rising sales and management provided a more upbeat forecast for the important holiday season than it did over the summer. The result came with a 15 percent rise in domestic eCommerce sales, The Wall Street Journal reported.
Best Buy has been using its brick-and-mortar locations to fill eCommerce deliveries as well as contend with Amazon. It has been offering one-hour pickup in stores and complimentary next-day delivery on many products during the holiday shopping season. Its comp sales increased 1.7 percent from a year ago, which was at the top end of its revised forecast, and include results from websites, call centers and stores open 14 months.
The retailer reduced its sales as well as profit targets in August, noting the impact of U.S. tariffs on goods made in China. The United States had imposed tariffs on headphones as well as televisions beginning on Sept. 1. Cell phones as well as laptops are set to have tariffs scheduled for Dec. 15. The merchant noted that higher tariffs on products from China did not have a material impact on its results, but Chief Executive Officer Corie Barry said the merchant did increase prices of some products as a result of the tariff increases.
In separate news, Best Buy said it was looking for revenue of $50 billion by fiscal 2025 ahead of its investor meeting per news earlier this year. The electronics retailer also intends to have $1 billion of additional efficiencies as well as cost reductions over the next five years, while still looking for revenue of $43.1 billion to $43.6 billion for fiscal 2020.
“In this next chapter, our focus continues to be top-line growth,” Best Buy CFO Matt Bilunas said per reports in September. “We also believe the initiatives we will outline today, along with a continued focus on cost reductions, will result in operating income rate expansion over the five-year timeframe.”