Best Buy Stock Jumps As Tech Discounts Drive Q2 Earnings Beat

“We are clearly operating in an uneven sales environment,” said CEO Corrie Barry.

Best Buy  (BBY) – Get Best Buy Co. Inc. Report shares jumped higher Tuesday after the tech-focused retailer posted better-than-expected second quarter earnings thanks in part to deeper discounts that offset a pullback in consumer electronics spending.

Best Buy said non-GAAP earnings for the three months ending in April came in at $1.54 per share, down 48.3% from the same period last year but well ahead of the Street consensus forecast of $1.27 per share. Group revenues, Best Buy said, fell 12.8% from last year to $10.33 billion, but again topped analysts’ forecasts of a $10.24 billion tally. Same-store sales, Best Buy said, tumbled 12.1% from last year 

Looking into the 2023 financial year, which ends in February, Best Buy same store sales are likely to fall ‘slightly more’ than the 12.1% decline recorded over the second quarter.

Stocks Higher, Bed Bath & Beyond, Lucid Group, Peloton And Best Buy In Focus – Five Things To Know

“We are clearly operating in an uneven sales environment,” said CEO Corrie Barry. “As we entered the year, we expected the consumer electronics industry to be softer than last year following two years of elevated growth driven by unusually strong demand for technology products and services and fueled partly by stimulus dollars.:

“The macro environment has been more challenged due to several factors and that has put additional pressure on our industry,” she added. “We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth.”

Best Buy shares were marked 2.66% higher in pre-market trading immediately following the earnings release to indicate an opening  bell price of $75.66 each.

  “Our current FY23 planning assumptions for a comparable sales decline in a range around 11% and a non-GAAP operating income rate of approximately 4% are consistent with the update we provided in late July, said CFO Matt Bilunas.