Best Buy Co., Inc. (NYSE: BBY) on Thursday reported an unexpected increased in first-quarter comparable-store sales, sending the shares up more than 18 percent.
The electronics retailer said comparable store sales, a closely watched indicators for retailers, unexpectedly rose 1.6 percent in the first quarter. In March, the company had forecasted same-store sales to fall by 1 percent to 2 percent in the latest quarter. Analyst polled by Thomson Reuters also expected a 1.5 decline.
Best Buy now expects comparable sales to increase between 1.5 percent to 2.5 percent in the second quarter.
“We are pleased today to report strong top and bottom line results for the first quarter of fiscal 2018,” said Hubert Joly, Best Buy chairman and CEO. “Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy. I want to thank all our associates across the company for their hard work in delivering these results.”
The company said the strong performance in the first quarter was boosted by robust demand for gaming and mobile products as well as the anticipated arrival of delayed federal tax refund checks.
“Compared to our expectations going into the quarter, our revenue was higher due to strong performance in gaming, a better-than-expected result in mobile, and the improvement of overall sales trends due to the arrival of delayed federal tax refund checks.” Joly continued.
Total revenue rose 1 percent to $8.53 billion in the quarter ended April 29. While net income came in $188 million, or 60 cents per share.
Analysts polled by Thomson Reuters had estimated earnings of 40 cents per share on $8.28 billion in revenue.
Best Buy shares jumped as much as 18.6 percent to $59.80 in the early trading.