People wearing masks walk past a large face mask sign in front of a Best Buy near Columbus Circle that as the city enters Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on July 22, 2020 in New York City.
Alexi Rosenfeld | Getty Images
Best Buy on Tuesday reported strong second-quarter sales growth, helped by its biggest quarterly increase in online sales ever, as customers bought computers, kitchen appliances and other tech to help them work, cook and attend school at home during the coronavirus pandemic.
Online sales shot up 242% in the U.S. compared with the prior year, as the website drew higher traffic and more people converted from browsing to buying.
Sales at stores open at least a year grew by 5.8%, higher than the 2.3% that Wall Street expected. That same-store sales growth was its highest in two years, even though its stores were open by appointment only for the first six weeks of the quarter.
However, shares of the company were down more than 2% in premarket trading, as the company failed to provide an outlook for its future results.
Chief Financial Officer Matt Bilunas said in a news release he expected to see year-over-year sales growth in the third quarter. However, he warned growth wasn’t likely to continue at the same pace. He also cautioned the retailer will have higher expenses as its stores are fully reopened.
Here’s what the company did in the fiscal second quarter ended Aug. 1:
- Earnings per share: $1.71, adjusted, vs. $1.08 expected by Refinitiv’s consensus estimates
- Revenue: $9.91 billion vs. $9.71 billion expected by Refinitiv estimates
- Same-store sales growth: 5.8% vs. 2.3% expected, according to FactSet
“Overall, as we plan for the back half of the year, we continue to weigh many factors including potential future government stimulus actions, the current shift in personal consumption expenditures from areas like travel and dining out, the possible depth and duration of the pandemic, the risk of higher unemployment over time, and the availability of inventory to match customer demand,” he said.
Best Buy reported second-quarter net income of $432 million, or $1.65 per share, a significant increase from $238 million, or 89 cents per share, a year earlier.
Excluding items, it earned $1.71 per share, higher than the $1.08 per share expected by analysts surveyed by Refinitiv.
Revenue was $9.91 billion, up from $9.54 billion a year earlier, and higher than analysts expected.
Read the complete press release here.