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Best Buy’s third quarter results on Tuesday beat Wall Street expectations, as the company continued to see strong demand for technology during the coronavirus pandemic.
Shares of the company were down nearly 3% in pre-market trading early Tuesday.
Despite its strong third quarter, the retailer declined to provide an outlook for the fourth quarter – a significant time for electronics and technology purchases during the holidays – due to the uncertainty created by the pandemic.
Here’s what the company did in the fiscal third quarter ended October 31:
- Earnings per share: $ 2.06, adjusted, vs. $ 1.70 expected by Refinitiv consensus estimates
- Revenue: $ 11.85 billion vs. $ 11.00 billion expected by Refinitiv estimates
- Comparable store sales growth: 23% vs. 13.6% expected by StreetAccount estimates
Best Buy reported third quarter net income of $ 391 million, or $ 1.48 per share, from $ 293 million, or $ 1.10 per share, a year earlier.
Excluding items, it gained $ 2.06 per share, up than the $ 1.70 per share expected by analysts polled by Refinitiv.
Income increased to $ 11.85 billion, up from $ 9.76 billion a year earlier, which exceeded Wall Street expectations of $ 11 billion.
The company’s comparable store sales increased 23% overall. In the United States, comparable store sales increased 22.6%. They increased by 27.3% internationally.
Online revenues in the United States were $ 3.82 billion in the third quarter, up 174% year-over-year and accounting for more than a third of the total revenue of the company in the United States. It was the company’s second best quarter for online revenue in the United States, even surpassing the company’s e-commerce sales in the past holiday season.
During the coronavirus pandemic, Best Buy’s sales have been boosted by stay-at-home trends as more consumers need the technology to set up their home offices or to help their children go home. distance school. The company decided to close its stores and switch to curbside recycling only in the early months of the global health crisis – despite being seen as a key retailer.
In the third quarter, CEO Corie Barry said customers continued to look to big box stores for everything from kitchen appliances and school laptops to home theater equipment.
“The current environment has underscored our goal of enriching lives through technology, and the capabilities that we are adapting and strengthening now will benefit us in the future as we execute our strategy,” she said in a statement. Press release.
As of the market close on Monday, Best Buy shares were up 39% this year, giving the company a market cap of $ 31.6 billion.
Read Best Buy’s full press release here.
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