Best Buy digital sales surge as coronavirus fuels work-from-home boom
Digital sales soared 242%
Best Buy Co. digital sales soared 242% in the three months through June as customers loaded up on products for working remotely or entertaining their families during coronavirus lockdowns.
The Richfield, Minn.-based electronics retailer earned $432 million, or an adjusted $1.71 per share, as enterprise sales rose 3.9% to $9.91 billion. The results outpaced the $1.08 per share and $9.71 billion of sales that analysts surveyed by Refintiv were expecting.
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“We are reporting strong quarterly results in the midst of unprecedented times,” CEO Corie Barry said in a statement. Best Buy shares dropped, however, after the company noted that revenue growth is unlikely to remain at current levels.
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Comparable sales rose 5.8% during the past quarter, boosted by products like computers, tablets and appliances, though stores were open only by appointment for the first six weeks of the period.
Domestic revenue increased 3.5% year over year to $9.13 billion and accounted for 92% of all sales. U.S. stores open for at least 12 months saw sales grow 5%.
Meanwhile, international sales rose 9.4% to $782 million, and comparable sales were up 15%.
Best Buy did not provide third-quarter guidance, but said that while sales are not expected to maintain their current 20% growth rate, they will be higher than last year.
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Best Buy shares rose 34% this year through Monday, outperforming the S&P 500’s 6.21% gain.