Best Buy wins the holidays with a massive jump in sales

Best Buy wins the holidays with a massive jump in sales

Best Buy wins the holidays with a massive jump in sales

At Best Buy, sales at established stores rose 9 percent. Sales grew 9% during the quarter, driven by a record-breaking $2.8 billion in online sales alone for the retailer.

For the quarter ended February 3, Best Buy posted net income of $364 million, or $1.23 per share.

Adjusted for one-time gains and costs, earnings per share were $2.42, a bump of 26 percent that far outpaced the $2.05 per-share projections from analysts, according to Zacks Investment Research.

Revenue climbed to $15.36 billion, while analysts were calling for sales of $14.51 billion.

For the current quarter ending in May, Best Buy expects its per-share earnings to range from 68 cents to 73 cents.

By the end of May 2018, Best Buy is closing all of its mobile phone stores in the U.S. It is also quite possible that mobile retail margins are dipping and the business, in general, is not as profitable as it once used to be.

Best Buy launched the stores more than a decade ago, before Apple's iPhone was launched.

Looking ahead to next year, Best Buy expects sales to be flat to 2 percent higher. Customers are responding very positively to our Best Buy 2020 strategy, and I want to enthusiastically thank all our associates for their great work in delivering these results.

The company on Thursday reported that comparable sales jumped 9% during the holiday quarter that ended February 3, head and shoulders above the average Wall Street estimate for a 2.9% rise, according to Consensus Metrix. The shops, which are only a fraction of the size of a typical Best Buy location, are now more expensive to operate than a big-box store, it said. In fact, its stock is up over 60 percent since previous year and is approaching an all time high. It plans a new app feature so customers can tell the store when they're on their way to pick up some items. In particular, appliances led the charge with a 20.7 percent comparable sales increase domestically (compared to just 6.4 percent last year), and 49 percent comparable sales increase internationally (up from 38 percent).

Best Buy raised its full-year revenue growth outlook to 4% to 4.8% from its prior outlook of about 4%.

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