Best Buy reported revenue of $17B for Q4 2020, up 12% YoY, and the company's profit increased by a similar level to $816M for Q4. The company's share price fell by 6% on the earnings announcement.
- For overall 2020, the company's revenue increased by 8% to $47B, and its profit increased by 16% to $1.8B.
- Best Buy's computing and mobile phone division revenue increased by 16.4% in Q4 2020. Its appliances division grew by 36% compared to a 14.4% growth in Q4 2019. Its entertainment division grew by 31.4% compared to a 21% decline in Q4 2019.
- The company's YoY growth of 12% is lesser than its Q3 growth rate of 21%. Best Buy's Chief Financial Officer Matt Bilunas said that the company's same-store sales are expected to be in the range of 1% growth to a 2% decline, as people spend more on travel and dining in the second half of the year.
- Best Buy's e-commerce sales increased by 90% and contributed to 43% of sales in the U.S. in Q4 — 2x its previous year's sales — and increased by 144% overall last year.
- The company recently laid off 5,000 workers and reduced employees' working hours as they begin to focus on e-commerce.
In other retail news:
Target is adding mini Apple stores within 17 of its locations, doubling Apple's footprint in those stores. Last year, the company announced it will open Ulta Beauty shops in hundreds of its stores in 2021.
This story first appeared in Inside Business. You can read the full issue here.