Best Buy Co Inc. (NYSE: BBY) reported its second quarter results and topped analysts’ consensus estimates. Although Best Buy had beaten estimates, shares were still down almost 4 percent during after hours.
Best Buy reported revenue of $8.94 billion, an increase of 4.8 percent from $8.53 billion year over year, and also topping estimates of $8.66 billion. The company posted earnings of $0.69 per share, a 21 percent increase from $0.57 year over year, and beating an estimate of $0.63. Same-store sales also increased by 5.4 percent, also beating estimates of 2.2 percent growth.
“We are pleased today to report strong top and bottom line growth for the second quarter of fiscal 2018,” said Hubert Joly, Best Buy chairman and CEO. “Our higher-than-expected comparable sales of 5.4% were driven by stronger consumer demand for technology products and by the strong execution of our strategy. Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend. And, with our effective merchandising and marketing activities, combined with our expert advice and service available online, in-store and in-home – we are garnering an increasing share of those dollars.”
Even against retail giants like Amazon who dominate the market, Best Buy was still able to come on top and beat estimates compared to other retailers. In order to keep up competition against eCommerce, Best Buy stated that the company had a 31.2 percent eCommerce sales growth, which generated $1.1 billion in revenue, and plans to shift focus into online marketing for consumers. Best Buy shares have nearly increased by 60 percent year over year.
Best Buy CFO Corie Barry commented, “Today we are raising our topline guidance and are now expecting full year FY18 revenue growth of approximately 4.0% versus our previous outlook of 2.5%.”
For the third quarter, Best Buy is expecting revenue in between $9.3 to $9.4 billion and an EPS increase of $0.75 to $0.80 per share. For the full year, the company expects revenue to grow approximately 4 percent and expect operating income to increase from 4 percent to 9 percent.