Best Buy reported a 20% increase in fiscal second quarter sales as consumers refurbish their gadgets due to the ever-new lifestyles and work that have emerged over the past year, from the hybrid business system to online TV broadcasting.
The company’s sales benefited from huge consumer spending and government incentives in addition to higher wages and levels of financial savings owned by consumers, which pushed the company’s shares to rise by 6% earlier in today’s trading.
For the second fiscal quarter ended July 31, Best Buy earned $2.98 per share on an adjusted basis, topping the $1.85 expectations by Wall Street analysts, and the company collected $11.85 billion in revenue, compared with expectations of $11.49 billion, while the company’s net income rose to $734 million, or $2.9 per share, after it was $432 million, or $1.65 per share, a year ago.
As for online and in-store sales that have been open for at least 14 months, an important metric known as in-store sales, they grew by 20% compared to the same period last year, beating the 18.1% prediction by analysts.
Best Buy expects full-year revenue of $51-52 billion and in-store sales to grow 9-11%, higher than previous expectations of 3-6% growth, read more [Best Buy Sales Surge 36% And Raise Expectations After Consumers Brag About Their Electronics Purchases]. As for the third fiscal quarter, the company sees revenue in the range of $11.4-11.6 billion, while in-store sales will decline 1-3%.
The company’s online sales grew by 242% during the same quarter last year, recording the highest quarterly rise ever, but compared to the current quarter, online sales fell by 28.1%.
As of yesterday’s close of Best Buy’s stock of $112.16, the stock has grown 12% this year with a market capitalization of $28.09 billion.