Best Buy to Dramatically Expand Sales of Apple Watch

That said, BBY stock could be a heck of trade for the next few months. If Best Buy’s sales are any indication, it looks like that shouldn’t be a concern.

Best Buy will sell the Apple Watch in all of its 1,050 stores by the end of September, responding to strong consumer demand for the wearable.

The firm has a market cap of $11.93 billion and a price-to-earnings ratio of 13.28. And Joly’s helped the retailer compete with rivals through initiatives such as a price-matching program. But don’t expect any knee-jerk reactions from Best Buy, he said. I have no business relationship with any company whose stock is mentioned in this article. Although Best Buy’s “price match policy” ensures that it offers competitive prices, which allows the company to fend off challenges put forward by its competitors.

Best Buy’s strong quarter has been a rare bright spot in a recent string of weak earnings releases in the retail industry.

Also proving a big victor was the company’s tie-in with Apple. It’s also been catering to shoppers’ increasing interest in “smart home” technology – the ability to turn down the heat remotely, for example. It’s highlighting appliances in specific kitchen and home areas within its stores.

The partnership is expected to enhance the retailer’s top line as it will help attract more customers to its stores. This meant that a lot of people had to go online to the Apple website in order to get the watch shipped to their location, so most of the sales in the first month are coming from online sales.

While Apple, Inc.’s Apple Watch may have been written off as a flop, there is the odd sign of moderate success in some segments of the market, and today that glimmer of light comes from people who shop at Best Buy Co., Inc. stores. A year earlier the Richfield, Minnesota-based company earned $146 million, or 42 cents per share.

Earnings per share beat analysts’ estimates from Thomson Reuters of 34 cents, as did Best Buy’s Q2 revenue of $8.53 billion – analysts expected $8.39 billion.

Same-store sales were up a robust 2.7 percent in the quarter and domestic revenue grew by 3.9 percent over the year-ago quarter. Weakness in the global segment, which saw revenue decline by 25%, was more than offset by growth in the much larger domestic business. In the United States, same-store sales rose by the same amount.

Best Buy’s shares were trading at $32.80 before the bell on Tuesday. That’s the biggest increase in four years and more than triple the 1 percent projected by analysts, according to estimates compiled by Consensus Metrix.