Best Buy Co Inc. (NYSE: BBY) reported its fourth quarter and full year financial results for fiscal year 2018. The electronics retailer topped estimates in both earnings and revenue. Shares were trading 3 percent higher after the opening bell on Thursday.
For the fourth quarter, Best Buy reported revenue of $15.36 billion, increasing 13.9 percent year over year, and beating analysts’ estimates of $14.51 billion. The company reported an EPS of $2.42, beating analysts’ estimates of $2.03.
Comparable same-store sales grew 9 percent in the quarter while analysts forecasted 2.9 percent. The strong fourth quarter brings the full year same-store sales growth to 5.6 percent.
“The comparable sales growth of 9.0% in the quarter is the result of the strong execution of our strategy combined with better product availability, a continued healthy consumer confidence and positive macro conditions, strength in the gaming category, and a favorable competitive environment, as we benefited from the exit or decline of certain competitors.” said Best Buy’s CFO, Corie Barry.
“Customers are responding very positively to our Best Buy 2020 strategy.” said Hubert Joly, Best Buy chairman and CEO.
Best Buy’s 2020 strategy is to find new revenue drivers that aren’t dependent on sales. The company’s strategy is to invest into services and expanding upon its Geek Squad segment.
For the first quarter, Best Buy is forecasting comparable sales growth of 1.5 percent to 2.5 percent, an EPS growth in the range of 13 percent to 22 percent and revenue between $8.65 billion to $8.75 billion.
Best Buy also announced plans to close down 250 of its mobile phones store in the U.S. by May.
Best Buy shares have increased 8.6 percent from year to date.