Investors made an error. They drove Best Buy Co. Inc. (NYSE: BBY) shares up 14% to over $46. Much of this was due to the company’s disclosure it had online sales in the United States of $881 million for the quarter that ended October 29. Lost in the excitement was the fact that Amazon.com Inc.’s (NASDAQ: AMZN) comparable number in its last reported quarter was $18.9 billion (for North America). Best Buy continues to be trounced by its primary rival.
The balance of Best Buy’s numbers shows its continued struggle. Revenue was $8.9 billion, compared to $8.8 billion in the same quarter a year ago. For the first nine months of its fiscal year, revenue was flat at $25.9 billion. Net income for the quarter was a small $191 million, compared to $125 million in the same period a year ago. And online sales were a small part of the total:
Domestic online revenue of $881 million increased 24.1% on a comparable basis primarily due to increased traffic, higher average order values and higher conversion rates. As a percentage of total Domestic revenue, online revenue increased 200 basis points to 10.8% versus 8.8% last year.
Old-world legacy sales are still too much of the total for online to drag the top line higher.
Amazon’s most recent quarter:
Net sales increased 29% to $32.7 billion in the third quarter, compared with $25.4 billion in third quarter 2015. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on net sales was $52 million.
Operating income was $575 million in the third quarter, compared with $406 million in third quarter 2015.
Net income was $252 million in the third quarter, or $0.52 per diluted share, compared with $79 million, or $0.17 per diluted share, in third quarter 2015.
In North America, Amazon’s $18.9 billion was up from $15 billion in the year-ago period.
Best Buy does not have nearly the tools to get and hold customers the way Amazon does. They range from its own branded consumer electronics products to Prime membership. As an overall business, Best Buy continues to fall behind.