Cost-cutting and an improved Web strategy helped Best Buy almost double its profits in the third quarter, the retailer said on Thursday.
An earnings report signaled to analysts that the company was on solid footing heading into the holiday shopping season.
“Retailers, a year or two ago, were sort of ‘Oh my gosh, we’ve got to compete with online,’ and maybe the business grew a little, but it wasn’t a cohesive omni-channel strategy,” Stifel Nicolaus analyst David Schick said, using the term for shopping through all available avenues like the Internet and at physical stores.
However, he said that the retailers that have put in the work “are seeing some benefits in late 2014.”
Best Buy increased its online sales 22 percent in the third quarter, compared with an increase of 15 percent in the same period last year.
It is also focusing on how it delivers gifts to customers, after bad winter weather and a large volume of packages helped cause delivery delays last year.
Like other major retailers, Best Buy is trying to ship more items from its stores, rather than just a handful of warehouses around the country, in an effort to get packages to shoppers quickly.
On Thursday, Best Buy said it had expanded its ship-from-store option to 1,400 stores, up from 400 last year. Another online service, in-store pickup, has improved as well. It helps drive foot traffic, something all retailers have been struggling with as more customers choose to shop online.
“The trip to the stores needs to be extraordinary from a customer-experience standpoint,” Best Buy president and chief executive Hubert Joly said during a call with analysts on Thursday to discuss the third-quarter results.
“Like every holiday, though, we believe the outcome of these initiatives is, and will continue to be, tempered by other external and internal factors — including the investments that are required to drive them,” he said in an earlier statement giving Thursday’s results.
In the period that ended Nov. 1, Best Buy reported its earnings per share rose 78 percent to US$0.32. Profits rose to US$107 million, up from US$54 million last year. Revenue increased to US$9.38 billion compared with US$9.33 billion a year earlier.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion