Best Buy Inc. reported a surprising positive same-store gain in the second quarter, thanks in part to strength in fitness wearables.
In its domestic business, Best Buy’s same-store sales grew 0.8 percent versus guidance of approximately flat comps. This was on top of comparable sales growth of 3.8 percent last year. Similar to last quarter’s trends from an overall merchandising perspective, Best Buy said it saw year-over-year sales growth in health and wearables, home theater and appliances, partially offset by continued softness in mobile phones and gaming.
Asked about the strength in wearables in the Q&A session, Corie Barry, CFO, said, “There was a reason we listed it first. It was very impactful overall to our business and again I think highlights a nice partnership for us,” referring to Fitbit, the leader in the fitness wearables space.
Best Buy is also confident that the wearables momentum will continue in the second half with a number of launches set for Fitbit and other players. Said Barry, “The back half isn’t just about phones. We think there could be some interesting things on the horizon. So, we are watching just like you are to see what else there might be in the back half. But from a holiday perspective, obviously we like our positioning in the category.”