Best Buy Q3 Entertainment segment revenue fell 4.6%

Blu-ray and DVD section at Best Buy in Costa Mesa, California in October 2021.

Eric Gruenwedel

Best Buy on November 22 reported domestic entertainment revenue of $490 million for the third quarter ended October 29. That was down 4.6% from revenue of $549 million in the year-ago period.

The segment, which includes products such as DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software, saw a 4.1% increase in the year-ago period. Sales growth this quarter was actually lower than in 2020, when consumers were constrained by home entertainment purchases due to the pandemic.

Total domestic revenue fell 10.8% to $9.80 billion compared to $10.985 billion last year.

Sales declines are nothing new for Best Buy, which posted year-round declines in same-store sales and a roughly 10% decline in same-store sales for the current fourth quarter, which includes Black Friday, Cyber ​​Monday, and the rest of the winter forecast holiday season in retail.

From a merchandising perspective, the nation’s largest consumer electronics retail chain saw comparable sales declines in almost every category, with computers and home theater being the biggest drivers.

Notably among the declines was e-commerce, with online revenue falling 11.6% to $3.04 billion, with e-commerce accounting for 31% of total domestic revenue, up from 31.3% a year earlier.

“We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe is more akin to historical holiday periods, with customers’ shopping activities centered on Black Friday week, Cyber ​​Monday and the two weeks leading up to March 25th December focused.” CEO Corie Barry said in a statement.

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