Best buy Thursday said first-quarter sales were up 36% due to the inclusion of shopper stimulating spending. Home appliances.
The company’s stake in pre-market transactions after consumer electronics and consumer electronics retailers raised their forecasts was 3.3%.
Best Buy CEO Corie Barry said consumers saw the value of their homes increase and decided to invest in technology and kitchen appliances. She said the three-month demand was “very high.”
“This demand is driven by a continuous focus on homes, including many aspects of our lives, including work, learning, cooking, entertainment, refurbishment and remodeling,” she said in a statement. “Demand was also supported by government stimulus and a strong housing environment.”
This raised retailers’ expectations for the first half of this year. Chief Financial Officer Matt Birnas said Best Buy expects same-store sales to increase by 3% to 6% this year. He previously said it would range from a 2% decline to a 1% growth. However, the company said it expects customers to spend more in other areas such as travel and eating out in the second half of this year.
Based on a Refinitiv analyst survey, the company reported the following for the accounting quarter ending May 1 compared to what Wall Street expected:
- Earnings per share: Adjusted $ 2.23 vs. Forecast $ 1.39
- Revenue: $ 11.64 billion vs. forecast $ 10.44 billion
Best Buy’s first-quarter net income increased from $ 159 million (61 cents per share) in the year-ago quarter to $ 595 million ($ 2.32 per share).
Except for the item, it earned $ 2.23 per share. Analysts surveyed by Refinitiv expect $ 1.39 per share.
Net sales increased from $ 8.56 billion in the previous year to $ 11.64 billion, surpassing the estimated $ 10.44 billion.
Sales increased by 37.2% online and in stores that have been open for at least 14 months. This is more than the 22.4% increase analysts expected in the StreetAccount survey. According to the company, home theater, computing and appliances showed the largest growth, with sales growing in almost every category.
Barry said in a statement that the total growth rate of new customers is about 50% higher than before the pandemic. But these customers look different. She said she was slightly younger, had more women, and had slightly less income.
And for the first time in the last 12 months, she said, the largest retailer cohort of shoppers is the millennial generation.
This is the first quarter that Best Buy faces a year-over-year comparison with its business during a pandemic.A year ago, a retailer I saw an unusual shopping pattern unfolding Americans prepared for long-term stays at home and soon began working in remote areas and attending school. Sales surged initially and then declined in the year-ago quarter as retailers chose to temporarily close their stores and switch to models with curbside pickups only.
Best Buy is betting on a pandemic Permanently change consumer behavior — And that means a change in the workforce and stores. The company said it would dismiss about 5,000 employees in early February and consider renewing its leases, reducing its nationwide store footprint.
Barry said in a statement Thursday that the company is trying to better understand the role of the store in the future and has begun testing various formats. To process online orders, we are piloting a store with a small sales floor and a large back room. It will also open a more experiential store in Houston, allowing customers to try out gaming and fitness products, check out premium home theater setups, and consult with a larger nerd squad team.
Later this year, Barry said Best Buy would try prototypes of other stores of different sizes, including a new outlet store.
“We are testing the right combination of experience, space and place, all of which need to be played together in the right way,” she said. “We clearly feel the urgency. We want to make sure we understand this, but we endanger our customers and, thankfully, the experience of our employees in this job. I don’t want to be urgent, and we’re not in a normalized environment yet. “
As of Wednesday’s closing price, Best Buy’s share price has risen 17% this year. Shares reached a 52-week high of $ 128.57 earlier this month and closed at $ 116.96 on Wednesday. The company has a market value of $ 29.29 billion.
Read company press release here.
Best Buy (BBY) Revenue Beats in the First Quarter of 2022
Source link Best Buy (BBY) Revenue Beats in the First Quarter of 2022