Consumer electronics retailer Best Buy Co. Inc. has hiked its guidance for the financial year after better-than-expected results in the second quarter, the company announced in a filing.
- Best Buy now expects the non-GAAP gross profit rate to come in slightly above the previous year’s level, versus the earlier outlook of flat. It also hiked sales growth outlook to 9% to 11% from the earlier outlook of 3% to 6%, with enterprise revenue of $51.0 billion to $52.0 billion.
- Q2 enterprise revenue grew to $11.849 billion from $9.910 billion last year, with operating income up 40%, equivalent to 6.7% of revenue versus 5.7% in 2020. Diluted earnings per share climbed to $2.90 from $1.65.
- Chief Finance Officer Matt Bilunas said second-half sales are likely to range flat to 3% lower than the same level last year, an improvement from the high single-digit decline earlier expected. Enterprise revenue is projected between $11.4 billion and $11.6 billion in the third quarter.
- Chief Executive Corie Barry said results also indicate a strong performance when compared with the same period two years ago, prior to the COVID-19 pandemic. Stores were limited to curbside service or in-store appointments for most of the second quarter last year.
Barry believes the company is fundamentally in a stronger position than expected two years ago, with the growth in the consumer electronics business. BBY is up 4.32% premarket.