Dive Brief:
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Best Buy’s adjusted Q1 profit increased more than 10%, beating expectations, a rise attributed to the company’s cost-cutting measures.
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Revenue fell 3.3% and the retailer said to expect poor sales in coming months because the electronics sector is soft, especially in smartphones.
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Using stores as mini warehouses for online orders helped the retailer see a 29% increase in Q1 online sales, the company said.
Dive Insight:
Best Buy has squeezed its operations and bumped up its e-commerce game, which has led to these unexpected profits. But electronics continue to see stiff competition and slow sales everywhere, which will keep pressure on the retailer, and all electronics retail. That is at least untill the holidays, when shiny new items, including new smartphones like the much-anticipated iPhone 6, arrive.