For the first quarter, Best Buy saw its online sales rocket a staggering 155.4% as Best Buy catered to consumer tech needs via a curbside pickup program. Meanwhile, physical comparable store sales fell 5.3% as the traditional brick-and-mortar experience was closed off to customers amid the coronavirus pandemic.
“In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81% of last year’s sales during the last six weeks of the quarter, even though not a single customer set foot in our stores,” Best Buy CEO Corie Barry said in the retailer’s earnings release.
Best Buy reported adjusted earnings per share of 67 cents, exceeding consensus forecasts of 43 cents. While revenue fell over 8% from the prior year, the $8.56 billion tally also exceeded estimates for the quarter.
Best Buy maintained its cash dividend, but withdrew its full-year earnings guidance.
The retailer began opening stores on May 4 with strict social distancing guidelines and currently has round 70% of its locations open to customers in some format.
“As challenging as the current situation is, I am certain Best Buy will remain a strong, vibrant company that is well positioned to deliver on our purpose and thrive in a new and different environment. In fact, we have taken the opportunity to accelerate aspects of our strategy as this environment has quickly shifted the ways in which customers interact with retailers,” Barry said.
Though Cramer said Best Buy isn't his favorite name in the space, he believes in the company's ability to be "incredibly creative."