NEW YORK (AP) — Best Buy Co. reported its largest second-quarter sales boost in 15 years on Tuesday, helping to push revenue and profit beyond Wall Street expectations.
Same-store sales, a key measure for retailers, jumped 6 percent during the quarter. But investors shrugged off the results and sent shares lower in premarket trading on a weaker-than-expected forecast for the current quarter.
Only a few years ago, sceptics were writing Best Buy’s obituary. But the retailer has surprised investors with its resilience. Best Buy has improved the store experience, allowing shoppers to test new technology. It’s invested in price matching and offers speedier delivery options. The company has partnered with Amazon.com to sell voice-controlled TVs at its stores.
The Richfield, Minnesota-based company’s profit jumped 16.7 percent to $244 million, or 86 cents per share, as revenue rose 5 percent to $9.38 billion.
Earnings before adjustments for restructuring costs were 91 cents per share, topping Wall Street expectations for 83 cents per share. Revenue also beat Wall Street forecasts.
The company also raised its full-year guidance to a range of $4.95 to $5.10 per share, up from $4.80 to $5.00 per share. Analysts expect profit of $5.01 per share.
But the consumer electronic retailer’s third-quarter outlook fell short. It expects profit between 79 cents and 84 cents per share on revenue between $9.4 billion and $9.5 billion. Analysts polled by FactSet expect profit of 94 cents per share on revenue of $9.49 billion, on average.
Best Buy shares have risen 19 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 8 percent. The stock has increased 32 percent in the last 12 months.
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