Empty DVD/Blu-ray section at a Best Buy in Costa Mesa, Calif., Feb. 28
May 30, 2024
Best Buy May 30 reported first-quarter (ended May 4) entertainment revenue of $492.2 million on overall domestic revenue of $8.2 billion, which was down 20% from entertainment revenue of $616 million on total revenue of $8.8 billion in the previous-year period.
The entertainment segment, which includes products such as DVD and Blu-ray Disc movies, video game hardware and software, books, music CDs, and computer software, saw same-store sales decline 11.3% compared to an increase of 3.8% in the prior-year period.
The primary drivers of lower entertainment revenue included declines in video game hardware console sales and the concurrent dearth of new-release titles, as well as the previously announced decision to stop selling movie DVDs and Blu-ray Discs.
Overall domestic revenue declines were also driven by an 18.5% same-store decline in home appliances revenue, an 8.3% drop in consumer electronics sales, and a 2.2% dip in mobile phones and computing.
“The mix of macro factors continued to create a challenging sales environment for our category during the quarter, and our sales were slightly softer than our expectations,” CEO Corie Barry said in a statement.
CFO Matt Bilunas said he expects to see sequential improvement in comparable sales performance, including trending towards the midpoint of annual comparable sales guidance.
“Even at the midpoint of the comparable sales guidance, we expect to deliver profitability at the high end of our operating income rate guidance due to a higher gross profit rate in our membership and services offerings,” Bilunas said.
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