Customers wait outside a Best Buy store in downtown Toronto, Ontario on November 23, 2020 to collect their online orders.
Geoff Robbins | AFP | Getty Images
Best buy On Thursday, the company said sales had increased 36% in the first quarter of the fiscal year Consumer electronics.
The company shares more than 4% in premarket trading after the home electronics and appliances retailer raised its forecast.
Corie Barry, CEO of Best Buy, said consumers decided to invest in technology and kitchen appliances as home values rose. She said demand was “extraordinarily high” over the three month period.
“This demand is driven by the continued focus on the home, which encompasses many aspects of our lives including working, learning, cooking, entertaining, renovating and remodeling,” she said in a press release. “Demand was also supported by government stimulus programs and the strong residential environment.”
This has raised the retailer’s expectations for the first half of the year. CFO Matt Bilunas said Best Buy expects sales to grow 3% to 6% in the same store this year. He had previously said that they would range from a 2% decrease to a 1% increase. However, he said the company expects customers to increase their spending in other areas such as travel and restaurants in the second half of the year.
The company reported for the fiscal quarter ended May 1, versus Wall Street’s expectations, based on an analyst survey by Refinitiv:
- Earnings per share: $ 2.23 adjusted versus $ 1.39 expected
- Revenue: $ 11.64 billion versus $ 10.44 billion expected
Best Buy’s net income rose to $ 595 million, or $ 2.32 per share, for the first quarter from $ 159 million, or 61 cents per share, a year earlier.
Excluding items, it made $ 2.23 per share, more than the $ 1.39 per share expected by analysts surveyed by Refinitiv.
Net sales rose to $ 11.64 billion from $ 8.56 billion last year, beating estimates of $ 10.44 billion.
Sales on the Internet and in stores that have been open for at least 14 months rose 37.2%, above the growth of 22.4% expected by analysts, according to StreetAccount.
At the close of trading on Wednesday, Best Buy shares were up 17% this year. Shares hit a 52-week high of $ 128.57 earlier this month, closing at $ 116.96 on Wednesday. The company’s market value is $ 29.29 billion.
Read the company’s press release Here.
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