Best Buy (NYSE:BBY) beat Wall Street estimates for quarterly same-store sales on Thursday, as the consumer electronics retailer sold more wearables and tablets and signed up more people to its subscription-based tech support services.
Best Buy’s overall same-store sales rose 1.1% in the first quarter ended May 4. Analysts on average had expected a 0.9% increase
Total revenue for the Minneapolis-based retailer rose to $9.14 billion from $9.11 billion, in line with analysts’ estimates.
Operating income totaled $334 million, besting the $265-million figure in the prior-year quarter.
Best Buy is providing the following Q2 FY20 financial outlook, for Enterprise revenue of $9.5 billion to $9.6 billion. Enterprise comparable sales growth of 1.5% to 2.5%
Non-GAAP effective income tax rate is expected to roll in at approximately 24.5%,, with diluted weighted average share count of approximately 269 million. Non-GAAP diluted EPS of $0.95 to $1.00
Said Hubert Joly, Best Buy CEO, "We reported comparable sales growth at the high end of our guidance and delivered better-than-expected profitability. In addition to these strong financial results, we continued to make significant progress implementing our Best Buy 2020 strategy to enrich lives through technology and further develop our competitive differentiation."
In June, Corie Barry will become the fifth CEO in Best Buy’s 53-year history. At that time, Joly says he will transition to the newly created role of executive chairman of the board.
"I am very proud of the seamless transition we have decided to implement, as it reflects positively on our momentum as well as our focus on executive development and succession planning."
Shares in BBY docked $2.26, or 3.3%, to $66.94 Thursday.
