Best Buy Co. (BBY) - Get Best Buy Co., Inc. Report posted stronger-than-expected second quarter earnings Tuesday, while lifting its full-year sales forecast, as major U.S. retailers continue to show impressive same-store traffic growth.
Best Buy said non-GAAP earnings for the three months ending in July came in at $2.98 per share, up 70.3% from the same period last year and xxx the Street consensus forecast of $1.85 per share. Group revenues, Best Buy said, rose 19.6% to $11.85 billion, ahead of analysts' forecasts of an $11.46 billion tally.
Same-store sales, Best Buy said, rose 20% from last year, smashing the Refinitiv forecast of a 17.4% gain, while the Minneapolis-based retailer lifted its fiscal 2022 comp sales forecast to a range of +9% to +11% from its prior estimate of between +3% to +6%. Full year revenues, Best Buy said, are forecast between $51 billion and $52 billion.
“We are reporting record second quarter results today with comparable sales growth of 20% and operating income growth of 40% compared to last year,” said CEO Corie Barry. “We are lapping an unusual quarter last year as our stores were limited to curbside service or in-store appointments for roughly half the quarter. When we compare to two years ago, our results are also very strong. Compared to the second quarter of FY20, revenue is up 24% and our operating income has more than doubled.”
“Customer demand for technology products and services during the quarter remained very strong. Customers continued to leverage technology to meet their needs, and we are providing solutions that help them work, learn, entertain, cook and connect at home," she added. "The demand was also bolstered by the overall strong consumer spending ability, aided by government stimulus, improving wages and high savings levels.”
Best Buy shares were marked 6.8% higher in early trading following the earnings release to change hands at $119.50 each.
Last week, a series of U.S. retailers, including Foot Locker (FL) - Get Foot Locker, Inc. Report, Kohl's (KSS) - Get Kohl's Corporation Report and Macy's (M) - Get Macy's Inc Report posted stronger-than-expected second quarter earnings that defied a slowdown in July retail sales.
Foot Locker posted a surprise 5.9% gain in same-store sales, blasting the Refinitiv forecast of just 0.2%, and noted it was 'cautiously optimistic' about the outlook for the back-half of 2021.
Looking into the 2022 financial year, Kohl's said it sees net sales growing by a 'low twenties' percentage rate, with adjusted earnings in the region of $5.80 to $6.10 per share, up from its prior forecast of $3.80 to $4.20 per share.
Kohl's larger rival, Macy's, also smashed Street forecasts with a bottom line of $1.29 per share on sales of $5.65 billion.
Macy's also said it would reinstate its dividend at 15 cents per share, payable on October 1, while authorizing a $500 million share buyback, and boosted its full-year sales outlook to a range of $21.73 billion to $22.23 billion.
The Commerce Department's July report on U.S. retail sales showed a bigger-than-expected 1.1% decline from the previous month, but also noted that clothing and clothing accessories sales were up 43.4% from last year to around $17.779 billion.