Tech Data has logged its second consecutive quarter of sales declines in Europe for its Q2 ending 31 July 2019.
Global revenues grew by two per cent year on year to $9.09bn for the three-month period, while GAAP operating income jumped 13 per cent to $124.7m.
But, while Tech Data's revenues in the Americas and Asia grew by seven per cent and 14 per cent respectively in Q2, European revenues dipped by two per cent to $4.44bn. Tech Data claims however that, on a constant currency basis, sales grew by two per cent.
It's the second consecutive quarter of sales declines for Tech Data's European business, which logged an eight per cent decrease in Q1.
But despite revenues continuing on a downwards trajectory, Tech Data posted an enormous profits jump in Q2. GAAP operating income leapt by 29 per cent to $37.6m.
"We are pleased to report that Tech Data delivered an outstanding second quarter performance marked by broad-based improvement across our geographies," said CEO Rich Hume in a statement.
"[We continue to] advance our strategy, invest for the future and return cash to our shareholders in the form of share repurchases. The Board's authorisation of an additional $200m share repurchase reflects our continued confidence in our business and commitment to creating value for our shareholders."
Following its Q1 results, Rich Hume told investors on an earnings call that several factors including Brexit, currency fluctuations and a softening PC market have posed challenges for Tech Data's European business. European president Patrick Zammit previously added that fierce competition and a general economic slowdown across the continent are making it difficult to grow.
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