Publish date:

Best Buy reports massive rise in online, in-store sales

People turned to Best Buy to buy computers, home theater and appliances during the pandemic.

Best Buy has seen a boost in revenue thanks to people working and going to school from home during the COVID-19 pandemic. 

According to the Richfield-based retailer's third-quarter earnings report, online sales in the United States increased by 174% and same-store sales grew by 23% in the 13-week period that ended Oct. 31. 

“Today, we are once again reporting strong quarterly results in the midst of unprecedented times,” Best Buy CEO Corie Barry said in a statement.

“Our comparable sales grew a remarkable 23% as we leveraged our unique capabilities, including our supply chain expertise, flexible store operating model and ability to shift quickly to digital, to meet what is clearly elevated demand for products that help customers work, learn, cook, entertain and connect in their homes."

"The current environment has underscored our purpose to enrich lives through technology, and the capabilities we are flexing and strengthening now will benefit us going forward as we execute our strategy," Barry added. 

Revenue from online sales in the U.S. was $3.82 billion in Q3, making up more than one-third of the company's total U.S. revenue, the earnings report shows. This is Best Buy's second-best quarter for U.S. online revenue ever, topping its online sales during last year's holiday season, CNBC says. 

The largest drivers in Best Buy's growth came from computers, home theater and appliances, Best Buy said, noting it saw growth across most categories but did see a decline in mobile phone sales in the third quarter. 

Overall, Best Buy reported a third-quarter net income of $391 million, up from $293 million a year earlier.

Follow Bring Me The News on LinkedIn

Despite a strong third quarter, Best Buy is reluctant to provide an outlook for the fourth quarter – a big time of year for tech sales thanks to the holiday shopping season – due to uncertainties with the COVID-19 pandemic. 

“While the demand for the products and services we sell remains at elevated levels as we start the fourth quarter, it is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic," Best Buy CFO Matt Bilunas said in a statement. "Thus, similar to the last two quarters, we are not providing financial guidance today.

When markets closed on Monday, Best Buy's shares were up 39% this year, which gives the company a market cap of $31.6 billion, CNBC notes.

Next Up

Screen Shot 2021-10-27 at 1.11.05 PM

MPD chief 'confident' officers will still show up after Question 2 vote

Arradondo held a press conference Wednesday in which he urged for a 'No' vote.

J R Jones - Anoka County Jail 2021.10.16 - Resize crop

Charges: Driver in fatal hit-and-run said he thought he hit dog or sign

The crash killed a 56-year-old Blaine woman who had been out walking her dog.

vaccine, covid

Here is Minnesota's plan to vaccinate kids 5-11 against COVID-19

The plan includes hosting vaccination clinics at schools across the state.

Mounds View PD missing 12yo Riddley

12-year-old Twin Cities boy has been missing for 4 days

Police are asking for the public's help locating the child,

moorhead police

Police searching for man charged with kidnapping woman at gunpoint

The man approached the victim's car and pointed a gun at her, the charges state.

teacher, coronavirus, covid-19, school, classroom

Teachers union calls for 'bold' plan to get kids vaccinated against COVID

"All options should be on the table," Denise Specht, president of Education Minnesota, said.

madden's

Madden's has banner summer with surge of visitors to Gull Lake

The resort was named the No. 1 resort in the mid-Atlantic and Midwest.

denny dempsey

Burnsville priest identified as bicyclist killed in Rosemount

The church says he was doing what he loved: riding his bike.

Related

best buy

Best Buy plans to hire 1,000 new tech workers, focusing on people of color and women

Thirty percent of the company's new hires will be people of color and women, Best Buy says.

best buy

Best Buy reportedly cutting jobs, hours as pandemic hits stores

The Wall Street Journal reported this week that the Minnesota retailer is making cuts.

best buy

Best Buy confirms it has recently laid off 5,000 workers

The retailer has seen business boom since the pandemic started, particularly online.

Best Buy confounds expectations with huge rise in sales

But it's not all good news for the Richfield retail giant.