Q2 2022 Best Buy (BBY) Profits

Best Buy said on Tuesday that fiscal second quarter sales rose nearly 20% as consumers upgrade their devices and equipment and continually embrace the habits formed over the past year, from hybrid work to streaming d ‘TV shows.

Shares rose about 5% in pre-market trading.

The consumer electronics distributor has raised its outlook for the second half of the year. He now expects same-store sales to vary from zero to a 3% decline in the second half of the year compared to a year ago. He previously expected a sharp single-digit drop.

“Longer term, we are fundamentally in a stronger position than we expected just two years ago,” CEO Corie Barry said in a press release. “There has been a dramatic and structural increase in the need for technology. “

Due to the pandemic, she said, the retailer now serves “a much larger consumer electronics installation base with customers who have a high appetite for upgrading due to innovation. constant technological change and needs that reflect permanent life changes “.

She said the company’s sales had also benefited from strong consumer spending, government stimulus measures, and higher wages and savings levels.

Here’s what the company did for its fiscal second quarter ended July 31 compared to what Wall Street expected, based on an analyst survey by Refinitiv:

• Earnings per share: $ 2.98 adjusted vs. $ 1.85 expected
• Turnover: 11.85 billion dollars against 11.49 billion dollars expected

Best Buy’s second-quarter net income reached $ 734 million, or $ 2.90 per share, from $ 432 million, or $ 1.65 per share, a year earlier.

Excluding items, it gained $ 2.98 per share, higher than the $ 1.85 per share expected by analysts polled by Refinitiv.

Net sales reached $ 11.85 billion from $ 9.91 billion a year earlier, beating estimates of $ 11.49 billion.

Sales online and in stores open at least 14 months, a key metric known as same-store sales, increased 20% from the same period a year earlier. This was higher than the 18.1% growth analysts expected in a StreetAccount survey.

Best Buy said it forecasts revenue of between $ 51 billion and $ 52 billion and same-store sales growth of 9-11% for the year, which is 3-6% higher than previous forecast. %.

For the fiscal third quarter, it expects revenue to be between $ 11.4 billion and $ 11.6 billion and same-store sales to decline between 1% and 3%.

The retailer is going through an unusual time during the pandemic, when stores were only open by appointment for about half of the quarter. Online sales jumped 242% in the United States over the period of last year – the biggest quarterly increase on record by the company – as many shoppers used curbside pickup or shoppers. have their purchases delivered to their homes. Comparable store sales increased 5.8% in the second quarter of last year.

Barry pointed to the unique factors of the last year’s quarter, but noted that Best Buy’s revenue was up 24% and its operating profit more than doubled from the second quarter of last year. two years before the pandemic.

The shares closed at $ 112.16 on Monday, bringing the market value of the company to $ 28.09 billion. As of Monday’s close, shares of Best Buy have risen about 12% this year.

Read the company’s press release here.