Best Buy (NYSE: BBY) reported positive second-quarter earnings Tuesday after sales climbed 20% as customers continuously bought more electronics for remote work and entertainment. Shares rose approximately 9% in early morning trading amid the news.
The retailer raised its outlook for the second half of the fiscal year as it now expects same-store sales to range from a 9% to 11% increase.
“Over the longer term, we are fundamentally in a stronger position than we expected just two years ago,” CEO Corie Barry said in a press release. “There has been a dramatic and structural increase in the need for technology.”
Barry continued on to say that amid the pandemic, the retailer now tends to “a much larger install base of consumer electronics with customers who have an elevated appetite to upgrade due to constant technology innovation and needs that reflect permanent life changes.”
The electronics retailer reported earnings of USD2.98 per share, compared to the expected USD1.85 a share. Revenue totaled USD11.85 Billion, higher than analysts anticipated USD11.49 Billion.
Moreover, amid the coronavirus pandemic, Best Buy fundamentals have shifted.
“New customers are younger, female, and slightly lower income than pre-pandemic. With millennials the largest customer cohort and showing favorable repeat metrics, we see higher wallet share ahead,” said Jefferies analyst Jonathan Matuszewski after Best Buy’s earnings report. The analyst rates Best Buy’s stock at a Buy.
Best Buy shares have risen 12% throughout the year and has a current market value of USD28.09 Billion.