Best Buy raises FY same-store sales outlook

Retailer Best Buy reported better-than-expected second-quarter results ahead the bell on Tuesday, with the group raising its full-year same-store sales outlook after posting a comparable sales growth of 20% year-on-year.

Best Buy said second-quarter net income rose from $432.0m to $734.0m, while excluding items, it earned $2.98 per share, ahead of the $1.85 per share expected by analysts.

Revenues rose from $9.91bn to $11.85bn, also beating expectations for a print of $11.49bn.

Best Buy stated that the solid performance was driven by consumers continuing to upgrade electronic devices and equipment in order to support habits formed during the Covid-19 pandemic.

As a result of the strong quarterly performance, Best Buy also raised its full-year enterprise comparable sales growth outlook to a range of 9-11%.

Chief executive Corie Barry said: "We are lapping an unusual quarter last year as our stores were limited to curbside service or in-store appointments for roughly half the quarter. When we compare to two years ago, our results are also very strong. Compared to the second quarter of FY20, revenue is up 24% and our operating income has more than doubled.

"Customer demand for technology products and services during the quarter remained very strong. Customers continued to leverage technology to meet their needs, and we are providing solutions that help them work, learn, entertain, cook and connect at home. The demand was also bolstered by the overall strong consumer spending ability, aided by government stimulus, improving wages and high savings levels."

As of 1300 BST, Best Buy shares were up 4.32% in pre-market trading at $117.0 each.