Best Buy Inc. (BBY) - Get Report posted stronger-than-expected first quarter earnings Thursday, and confirmed its full-year profit guidance, as consumer electronics sales helped comparable revenues top analysts' forecasts.
However, shares were under pressure in early trading after the retailer said a fresh round of tariffs on China-made goods would cause it to increase prices to American consumer.
Best Buy said non-GAAP earnings for the three months ending on May came in at $1.02 per share, up 24.4% from the same period last year and firmly ahead of the Street consensus forecast of 87 cents per share. Group revenues, Best Buy said, were essentially flat at $9.142 billion and matched analysts' forecasts. Best Buy said same stores sales rose 1.1% from last year, just ahead of the 1% forecast.
Looking into the current fiscal year, which ends in early 2020, Best Buy repeated earlier projections that see earnings in the region of $5.45 to $5.65 per share and group revenues of between $42.9 billion and $43.9 billion.
"Q1 was a strong quarter and a good start to the year," said CEO Hubert Joly. "We reported comparable sales growth at the high end of our guidance and delivered better-than-expected profitability."
"In addition to these strong financial results, we continued to make significant progress implementing our Best Buy 2020 strategy to enrich lives through technology and further develop our competitive differentiation," he added.
Best Buy shares were marked 3..3% lower following the earnings release to change hands at $66.70 each, a move that would trim the stock's year-to-date gain to around 30%.