Best Buy (NYSE:BBY) on Tuesday reported strong second-quarter sales growth, helped by its biggest quarterly increase in online sales ever, as customers bought computers, kitchen appliances and other tech to help them work, cook and attend school at home during the coronavirus pandemic.
Online sales shot up 242% in the U.S. compared with the prior year, as the website drew higher traffic and more people converted from browsing to buying.
Sales at stores open at least a year grew by 5.8%, higher than the 2.3% that Wall Street expected. That same-store sales growth was its highest in two years, even though its stores were open by appointment only for the first six weeks of the quarter.
Chief Financial Officer Matt Bilunas said in a news release he expected to see year-over-year sales growth in the third quarter. However, he warned growth wasn’t likely to continue at the same pace. He also cautioned the retailer will have higher expenses as its stores are fully reopened.
During that same earnings call, CEO Corie Barry said inventory was limited in a number of categories as it saw more demand than expected and said that cut into sales growth.
Best Buy reported second-quarter net income of $432 million, or $1.65 per share, a significant increase from $238 million, or 89 cents per share, a year earlier.
Excluding items, it earned $1.71 per share, higher than the $1.08 per share expected by analysts.
Revenue was $9.91 billion, up from $9.54 billion a year earlier, and higher than analysts expected.
Shares however, took a battering, $7.10, or 6%, to $110.36 early Tuesday.
