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The company’s shares, which have gained 12.4% this year, rose 5% in premarket trading on Tuesday after Best Buy also forecast third-quarter comparable sales to fall 1% to 3%, compared with analysts’ average estimate of a 9.1% drop.
The consumer electronics retailer’s sales have surged over the last year as stuck-at-home Americans splurged on laptops, webcams and other computer accessories for their home offices and remote learning setups.
Best Buy Chief Executive Officer Corie Barry said sustained demand and a strong U.S consumer helped lift second quarter comparable sales by 20%, beating analysts’ average estimate of a 17.2% increase, according to IBES data from Refinitiv.
“Demand was also bolstered by the overall strong consumer spending ability, aided by government stimulus, improving wages and high savings levels,” Barry said in a statement.
Best Buy expects full-year comparable sales to rise 9% to 11%, compared to its previous forecast of an increase of 3% to 6%.
Total revenue rose to $11.85 billion from about $9.91 billion in the second quarter, above expectations of $11.49 billion.
Excluding one-time items, the company earned $2.98 per share, beating analysts’ average estimate of $1.85 per share.
