Best Buy Co. reported a better-than-expected first quarter as consumers continued to spend on electronics for their homes.
In a statement, CEO Corie Barry said that customer demand for technology products and services during the quarter was “extraordinarily high.”
“This demand is being driven by continued focus on the home, which encompasses many aspects of our lives including working, learning, cooking, entertaining, redecorating and remodeling,” she said. “The demand was also bolstered by government stimulus programs and the strong housing environment.”
The consumer electronics giant also raised its yearly forecast, after demand has continued into the second quarter.
Best Buy’s net income rose to $595 million, or $2.32 per share, for the quarter ended May 2, up from $159 million, or $0.61 per share, in the year-ago period. Excluding items, earnings per share totaled $2.23 per share, blowing past the $1.39 that analysts expected.
Net sales rose 36% to $11.64 billion from $8.56 billion a year earlier, outpacing estimates of $10.44 billion. The retailer said it saw growth across almost all its categories, with the largest drivers being home theater, computing and appliances.
"The year has clearly started out much stronger than we originally expected," stated CFO Matt Bilunas. "The sales momentum is continuing into Q2 and we are raising our annual comparable sales growth outlook. As we think about the back half of this year, we expect shopping behavior will evolve as customers are able to spend more time on activities like eating out, traveling and other events.”
For its second quarter, Best Buy expects comparable sales growth of 17%. The retailer is guiding for growth of 3% to 6% for the year, up from a 2% decline to 1% growth.