MINNEAPOLIS–Best Buy’s bottom line finished the second quarter at $158 million, 22 percent less than in the second quarter of last year.
Net sales in the quarter totaled $11 billion, up 12 percent over last year. However, Best Buy’s selling, general and administrative expenses rose 18 percent and cost of goods sold 12.4 percent. Same-store sales declined 3.9 percent, with most of the gain in total sales attributable to new-store openings both domestically and abroad.
The upward trend in expenses came as a result of the inclusion of Best Buy Europe’s higher-cost operating model and the de-leveraging of same-store sales declines in the United States and Canada. Brian Dunn, Best Buy’s chief executive officer, noted that the retailer made gains in market share throughout the world, especially in Canada and Europe.