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Best Buy ekes out sales boost in challenging Q1

May 23, 2019 / Daphne Howland

Best Buy on Thursday reported that U.S. first quarter revenue rose 0.8% year over year to $8.48 billion, with its new GreatCall acquisition contributing to sales. U.S. online sales rose 14.5% on a comparable basis to $1.31 billion, thanks mostly to higher average order values and increased traffic. As a percentage of total domestic revenue, e-commerce expanded by some 180 basis points to 15.4% from 13.6% last year. Overall company revenue rose to $9.14 billion from $9.11 billion a year ago. Domestic store comps rose 1.3%, driven by healthy sales in appliances, wearables and tablets partly offset by declines in entertainment, according to a company press release. The company excluded all 257 Best Buy Mobile stand-alone stores slated for closure in the U.S. from that metric. The domestic gross profit rate expanded by 40 basis points to 23.7% from 23.3% last year, driven mostly by better product margins and GreatCall's higher gross profit rate. Higher supply chain costs offset those gains somewhat, the company said. Overall company net income rose to $265 million from $208 million in the year-ago quarter.