Consumer electronics big box retailer Best Buy posted better-than-expected sales and earnings in its fiscal first quarter report, released Thursday. This, of course, helped to shake off any concerns that recently dubbed “retail apocalypse” was going to bring down everyone.
More specifically, the Richfield, MN-based retailer earned 60 cents per share, which is up an impressive 40 percent on the year, with sales surpassing $8.53 billion. This is up 1 percent on the quarter (ending April 29) with same store sales reversing a decline from last year of 0.1 percent to past a 1.6 percent increase. Analysts had only expected the company to see 40-cent share earnings on fiscal Q1 sales of $8.28 billion.
As you might expect, computers, mobile phones, and most consumer electronics (televisions, media players, video games, etc) drove most of the sales in Best Buy’s domestic segment, accounting for more than 75 percent of all business. The remainder, of course, quarter was accounted in entertainment, appliances, and services.
As such, Best Buy chairman and CEO, Hubert Joly, notes, “We are pleased today to report strong top and bottom line results for the first quarter of fiscal 2018. Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy. I want to thank all our associates across the company for their hard work in delivering these results.”
Accordingly, Best Buy stock jumped 11%, approaching 56 points, in premarket trading on Thursday morning. Most notably, this is the stock’s highest level in 11 years.
“Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy,” Joly goes on to say. “Compared to our expectations going into the quarter, our revenue was higher due to strong performance in gaming, a better-than-expected result in mobile, and the improvement of overall sales trends due to the arrival of delayed federal tax refund checks.”
And now, Best Buy expects its second quarter could reach an adjusted earnings per share between 57 and 62 cents (roughly a 60 cent midpoint). The company forecasts a second fiscal quarter revenue of about $8.65 billion, an increase of 1.4 percent that is based on guidance midpoint.