Best Buy’s same-store sales rose 23%, more than expected 13.6%, while online sales in the U.S. grew by 174% in the third quarter, according to the company’s press release. The company’s revenue rose to $11.85 billion from $9.76 million prior year, above expected $11 billion. The stock opened 5% lower on Tuesday on the lack of holiday forecasts due to pandemic uncertainties.
- Best Buy has higher supply chain costs from parcel surcharges and will make less money because videogame consoles, a popular holiday gift, are lower margin- Matt Bilunas, CFO.
- The company is remodeling its stores to drive sales and serve customers differently through online orders and delivery.
- Stay at home trends have benefited Best Buy as more consumers require technology to set up a home office and enable children to study remotely
- The company expects positive Q4 sales growth and sales trends to remain at levels experienced in Q3.
- Best Buy’s adjusted earnings per share were $2.06, up from the expected $1.70
- Net income was $391 million or $1.48 per share, up from $293 million or $1.10 per share a year earlier.
- International same-stores sales rose 27.3%, above U.S.’s 22.6%
- Total online revenues in the U.S. was $3.82, a 174% jump quarter over quarter, the second-best quarter in the U.S. online earnings.
- As of Monday’s market close, Best Buy’s shares were up 39% this year, giving the company a $31.6 billion market capitalization.
Best Buy’s stock is currently declining. BBY: NYSE is down 6.41%
