EmailBest Buy (BBY $23.95 +0.51) is trading over 2% higher this morning despite reporting negative December comps. The company reaffirmed fiscal year 2012 guidance this morning as well.
Earlier, the company reaffirmed fiscal year 2012 earnings of $3.35 to $3.65 per share versus the $3.40 Capital IQ Consensus Estimate as it announces Dec rev flat YoY at $8.4 bln, with comps -1.2%.
The company's Domestic segment generated $6.5 bln in revenue for fiscal December, an increase of 0.4 percent when compared with the prior-year period, with comps -0.4% (internatinal comps -1.7%). Domestic segment areas of comparable store sales growth included tablets and mobile phones within the Computing & Mobile Phones revenue category, eReaders within the Consumer Electronics revenue category, and the Appliances revenue category. Tablets and eReaders each delivered low triple-digit comparable store sales gains during the month. Mobile phones had a 20 percent comparable store sales increase during the month, driven by strong smart phone sales.
These increases were more than offset by comparable store sales declines in other areas, including gaming within the Entertainment revenue category and digital imaging within the Consumer Electronics revenue category. Gaming and digital imaging both experienced low double-digit declines in comparable store sales. The co noted that televisions experienced a mid single-digit comparable store sales decline within the Consumer Electronics revenue category. The co also noted that overall Domestic segment inventory levels finished fiscal December in line with its expectations.
"Based on our performance in December we continue to expect to achieve our annual guidance, despite customer traffic that was lower than expected until the last week before Christmas, which resulted in December rev that was slightly lower than our expectations."
