Dive Brief:

• Richfield, MN-based Best Buy has reported that Q2 sales fell 4% to $8.9 billion, worldwide Q2 same-store sales fell 2.7%, and U.S.-only Q2 same-store sales decreased 2%.

• The slower traffic continues to be due to softer demand for smartphones and a lack of innovation in other categories, the company said.

• Profits continued to be helped by cost-cutting measures, but investors where expecting Best Buy to graduate to sales growth by now.

Dive Insight:

Electronics is a category that many people turn online to buy, but Best Buy's woes stem from an overall soft demand for all electronics. The retailer said that same-store sales would see a “low single digit” rate for Q3 and Q4 sales. This Q2 decrease is the retailer's tenth straight quarterly sales decrease.