Best Buy Co. Inc., the nation's largest consumer electronics retailer, delivered robust earnings on strong sales Tuesday — further evidence that shoppers are doling out more money for GPS navigators and game consoles than for apparel and shoes.For the three months ended Dec. 1, earnings leapt 34.2 percent to $228 million, or 53 cents a diluted share, from $150 million, or 31 cents, in the year-ago period. This growth is attributed to new store openings, an increase in the average selling price of key goods, as well as an extra week of post-Thanksgiving revenue. Sales for the quarter grew 14.7 percent to $9.9 billion from $8.4 billion in the same period last year. Domestic and international revenue jumped 15 and 32 percent, respectively, as a favorable foreign exchange rate, coupled with the opening of new stores, bolstered sales.The retailer's results quantify recent government spending data that shows a shift in consumer spending away from apparel and shoes. According to the Bureau of Economic Analysis, real personal consumption expenditures on apparel and shoes grew 0.3 percent from the second quarter of this year to the third quarter. This compares with 2.4 percent for furniture and household equipment, which includes consumer electronics. Year-over-year, expenditures in home goods climbed 8 percent versus apparel and shoes' 2.1 percent gain.Top sellers for Best Buy as it was heading into the critical holiday shopping season included flat-panel TVs, game consoles (and related software) and GPS navigation devices.But similar to its apparel retail counterparts, Best Buy's strong sales growth is coming at the expense of gross margins. Goldman Sachs retail analyst Matthew J. Fassler said in a research note that the "quality of [Best Buy's] earnings was solid. That said, we would point out that gross margin, while it beat published consensus, met, rather than beat, our forecast."Best Buy raised its full-year earnings guidance to a range of $3.10 to $3.20 a diluted share from $3 to $3.15.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim