An employee carries a TV in a customer’s car at a Best Buy store in Orlando, Florida.
Paul Hennessy | Images SOUP | LightRocket | Getty Images
Best Buy said Tuesday’s second-quarter tax sales rose nearly 20 percent as consumers upgraded devices and equipment and permanently adopted habits formed over the past year, from hybrid work to TV shows in streaming.
Shares rose 4% in premarket trading.
The consumer electronics retailer raised its outlook for the second half of the fiscal year. It now expects sales in the same stores to hover between the plan and 3% in the second half of the fiscal year, compared to the previous year. Previously, a high single-digit decline was expected.
“There has been a dramatic and structural increase in the need for technology,” Corie Barry, CEO, said in a press release.
Due to the pandemic, he said the retailer now offers “a much larger base of consumer electronics facilities with customers who have a high appetite for upgrades due to constant technological innovation and needs that they reflect permanent changes in life “.
He said the company’s sales also benefited from strong consumer spending, government stimulus and higher wages and levels of savings.
This is what the company did for its second fiscal quarter ended July 31 compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Earnings per share: $ 2.98 adjusted versus $ 1.85 expected
- Revenue: $ 11,855 million vs. $ 11.49 million projected
Best Buy’s second-quarter net income was $ 734 million, or $ 2.90 per share, up from $ 432 million, or $ 1.65 per share, a year earlier.
Excluding items, it earned $ 2.98 per share, higher than the $ 1.85 per share expected by analysts surveyed by Refinitiv.
Net sales rose to $ 11.85 billion, from $ 9.91 billion a year earlier, surpassing estimates of $ 11.49 billion.
Online and in-store sales for at least 14 months, a key metric known as in-store sales, grew 20% over the previous year. This was higher than the 18.1% growth that analysts expected in a StreetAccount survey.
Shares closed Monday at $ 112.16 and raised the company’s market value to $ 28.09 million. At the close of Monday, Best Buy shares are up about 12% this year.
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Read the company press release here.