Best Buy's second-quarter online revenue fell 28.1% year-over-year

Best Buy announced its second quarter results for the period ending July 31, 2021 ( "Q2 FY22") on Tuesday . Sales increased 19.6% year-over-year to $11.85 billion . Net income increased 70% year-over-year to $734 million, doubling from the same period in 2019. Best Buy's stock price rose more than 8% on Tuesday , closing at $121.49 per share , close to its all-time high.

Among them, domestic revenue was US$11.01 billion, up 20.6% from the same period last year , and international revenue was US$838 million, up 7.2% year-on- year .

Looking at merchandise categories , the company saw sales growth in almost all categories , with the largest increases coming from home theater, computers and appliances .

From the channel perspective, domestic online revenue was US$3.49 billion, down 28.1% from the same period last year . This was mainly due to the lifting of the epidemic blockade and consumers returning to stores. The company achieved a 242.2% increase in online revenue in the second quarter of 2020, and online revenue accounted for 53.1% of total domestic revenue , which has dropped to about 31.7% this year , compared with 16.1% in the same period of 2019.

Neil Saunders, managing director of data analysis agency GlobalData , believes that "the online channel is now a larger part of Best Buy's business than in 2019. " But " Best Buy's second-quarter e-commerce decline highlights that the sayings that 'online will accelerate indefinitely' and ' all online industries can maintain their gains during the epidemic ' are wrong."

However , Best Buy CEO Corie Barry said the spread of the Delta variant is already having an impact. Younger shoppers who have begun returning to stores as vaccines become available are now turning to online shopping, especially in urban areas.

Some analysts believe that as technology companies such as Amazon and Apple postpone the time for employees to return to the office, the market demand for home office and electronic products will not decline in the second half of the year, and Best Buy's business is still worth looking forward to.

Best Buy had $6.4 billion in merchandise inventory as of July 31 , 55% higher than a year ago and 23% higher than two years ago. Executives said the company increased merchandise orders and shipping purchases earlier than normal in the face of port congestion and supply chain disruptions .

In addition to this, Best Buy raised its expected revenue for the current fiscal year. The company now expects sales to grow 9% to 11% this year, compared with its previous forecast of 3% to 6%.

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