London – Best Buy, which reported flat U.S. holiday sales, had better luck in Europe over Christmas.
Best Buy Europe, the retailer’s 50-50 joint venture with Britain’s Carphone Warehouse (CPW), showed a 14.5 percent hike in net revenue, to 1.1 million pounds, and a same-store sales increase of 7.8 percent for the fiscal third quarter, ended Dec. 31.
CPW attributed the gains to strong dealer sales, increased tablet demand, and a 3.9 percent increase in mobile subscriptions. The latter was fueled by “some extremely compelling” post-paid pre-Christmas promotions in the United Kingdom, CEO Roger Taylor said, while competitive pricing and attractive bundles drove increased tablet share.
Best Buy partnered with CPW in 2006 to launch Best Buy Mobile, a U.S. wireless initiative, which went on to become one of the chain’s most successful operations. Best Buy bought out CPW’s U.S. and Canadian stakes for $1.3 billion in 2011, which contributed to last year’s $1.7 billion fourth-quarter loss under then-CEO Brian Dunn.
I estimate this adds about 10c EPS to the Q4 earnings..