Customers will shop at the Best Buy Store in Chicago, Illinois on August 24, 2021. Best Buy reported a 20% increase in second-quarter sales as consumers purchased electronic devices to adapt to ongoing pandemic-related lifestyle changes.
Scott Olson | Getty Images
Best buy Earlier on Tuesday, consumer electronics retailers outperformed Wall Street’s earnings forecast for the first quarter, despite high levels of inflation and the company’s Covid-inspired end of the year-ago quarter. Stock prices have risen.
Stocks rose about 5% in pre-market trading.
According to a survey by analysts by Refinitiv, retailers’ behavior over the three months ending April 30 is as follows, compared to what Wall Street expected.
- Profit per share: Adjusted $ 1.57 vs. Forecast $ 1.61
- Revenue: $ 10.65 billion vs. forecast $ 10.41 billion
Best Buy’s first quarter net income fell to $ 341 It decreased from $ 595 million ($ 2.32 per share) in the previous year to $ 1 million ($ 1.49 per share). With the exception of the item, it earned an adjusted $ 1.61 per share.
Net sales It decreased from $ 11.64 billion in the previous year to $ 10.41 billion.
According to FactSet, Best Buy’s same-store sales were down 8% year-over-year, outperforming analysts’ expected decline of 8.6%.
Investors scrutinized retailer earnings Signs about the health of American consumers.. Some people are worried that using Best Buy could make a company particularly vulnerable to pullbacks. We faced a tough comparison with a year ago quarterly demand for pandemics of home theaters, computer monitors and kitchen utensils. As a result, same-store sales increased by 37.3%.
Walmart When GoalInvestor concerns rose last week. Both major retailers reported sales growth in the first quarter, but missed Wall Street revenue forecasts as fuel and fare costs soared and consumer demand for higher margins declined. bottom. In particular, Target CEO Brian Cornell said customers skipped bulky items such as TVs and kitchen utensils. This is a product that Best Buy also sells.
Retailer results were helpful Leads to a major sale on Wall Street last week..
Best Buy shares hit a 52-week low on Friday. Shares closed at $ 72.59 on Monday with a rise of less than 1%. The company’s share price has fallen by about 29% so far this year, below the S & P 500’s previous fall of about 17%.
This story is developing. Please check for updates.
