Best Buy (NYSE:BBY) said Thursday that sales grew 36% in the fiscal first quarter, as shoppers’ stimulus-fueled spending spree included consumer electronics.
Shares of the company rocketed $5.61, or 4.8% to $122.57, after the home electronics and appliance retailer raised its forecast.
Best Buy CEO Corie Barry said that that consumers decided to invest in technology and kitchen appliances as they saw home values rise. She said demand "was extraordinarily high" in the three-month period.
Chief Financial Officer Matt Bilunas said Best Buy expects same-store sales to grow 3% to 6% this year. He had previously said they would range from a decline of 2% to growth of 1%. However, he said the company anticipates customers will step up spending in other areas, such as travel and dining out, in the second half of the year.
Best Buy’s first-quarter net income rose to $595 million, or $2.32 per share, up from $159 million, or 61 cents per share, a year earlier.
Excluding items, it earned $2.23 per share, more than the $1.39 per share expected by analysts.
Net sales rose to $11.64 billion from $8.56 billion a year earlier, outpacing estimates of $10.44 billion.
Sales online and at stores open at least 14 months grew by 37.2%, higher than 22.4% growth that analysts expected, according to StreetAccount. The company said it had sales growth across almost all categories, with the largest gains in home theater, computing and appliances.
Tech Insider
