Customers shop at a Best Buy store on August 24, 2021 in Chicago, Illinois. Best Buy reported a nearly 20% increase in second-quarter sales as consumers buy electronics to adjust to lifestyle changes related to the ongoing pandemic.
Scott Olson | beautiful pictures
Best buy Shares rose early Tuesday, as the consumer electronics retailer beat Wall Street’s revenue estimates for its fiscal first quarter even as customers faced high inflation and the company posted a loss. a year ago was driven by Covid.
Shares were up about 4% in pre-market trading.
Here’s how the retailer did in the three-month period ending April 30 compared to what Wall Street had predicted, according to a survey of analysts by Refinitiv:
- Earnings per share: $1.57 adjusted versus $1.61 expected
- Revenue: $10.65 billion vs. $10.41 billion expected
Best Buy’s first-quarter net income dropped to $341 million, or $1.49 per share, down from $595 million, or $2.32 per share, a year earlier. Excluding items, it earned an adjusted $1.61 per share.
Sales network down to $10.41 billion from $11.64 billion a year earlier.
Same-store sales for Best Buy fell 8% year-over-year, a better performance than the 8.6% drop analysts expected, according to FactSet. .
Investors scoured retailers’ earnings for health signs of American consumers. With Best Buy, some worry that the company will be particularly vulnerable to a sale. It faces tough comparisons with a quarter of a year ago in terms of pandemic demand for home theatres, computer monitors and kitchen appliances. That sent same-store sales up 37.3%.
Walmart and TargetInvestors’ interest spiked last week. Both major retailers reported sales growth for the first fiscal quarter, but fell short of Wall Street earnings expectations due to soaring fuel and shipping costs and consumer demand. used for higher margins, discretionary purchases are reduced. In particular, Target CEO Brian Cornell said customers forgo bulky items like TVs and kitchen appliances, which Best Buy also sells.
Retailers’ results have helped led to a massive sell-off on Wall Street last week.
Shares of Best Buy hit a 52-week low on Friday. On Monday, the stock rose less than 1% to close at $72.59. The company’s stock is down about 29% so far this year and is trailing the S&P 500’s roughly 17% year-over-year decline.
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