In the battle against the almighty Amazon, Best Buy just booked a win for the brick and mortar team.
The retailer reported Thursday that it nearly doubled its third quarter profit over last year as American consumers helped drive a bump in comparable store sales.
The company touted computing, gaming, televisions, and appliances as a strong point, even though its mobile phones business wasn’t as hot.
Shares jumped 9% in premarket trading. The stock has taken a beating this year, having lost over 10% of its value as investors soured on its plans for a turnaround.
Like other retailers, Best Buy’s third quarter ended on November 1st.
Best Buy’s results are particularly important for a chain that has fallen victim in recent years to the so-called “showroom effect,” in which customers visit stores to check out products in-person, and then go home and buy online somewhere else like Amazon.
But Best Buy is also going to war in the digital realm. The firm experienced a 22% jump in U.S. comparable online sales last quarter.
And with the holidays around the corner, many retail analysts have noted that low gas prices are a reason to be merry, as consumers should have a bit more money to shell out on gifts.
To that end, Best Buy CEO Hubert Joly said on his company’s earnings conference call that the retailer will offer a greater assortment of gifts below $100 dollars this holiday season.
However, that doesn’t mean that Best Buy is immune to the world’s problems. Its international revenue dove over 8%, hampered by unfavorable currency exchange rates from a strong dollar and a dip in China sales.
