Best Buy Co Inc. shares jumped 5% in Tuesday premarket trading after it reported fiscal first-quarter revenue that beat expectations. The consumer electronics retailer posted net income totaling $341 million, or $1.49 per share, down from $595 million, or $2.32 per share last year. Adjusted EPS of $1.57 missed the FactSet consensus for $1.59. Revenue of $10.647 billion was down from $11.637 billion and ahead of the FactSet consensus for $10.382 billion. Enterprise comparable sales fell 8% with domestic comparable sales down 8.5%. The FactSet consensus was for an enterprise comparable sales decline of 9.1% with domestic comparable sales down 9%. Domestic comparable online sales fell 14.9%. “Even with the expected slowdown this year, we continue to be in a fundamentally stronger position than we were before the pandemic from both a revenue and operating income rate perspective,” said Chief Executive Corie Barry in a statement. Best Buy is planning for increased promotions and supply chain expenses going forward, Barry said, along with comparisons to last year’s stimulus and high demand. For the year, the company is now guiding for revenue of $48.3 billion to $49.9 billion, down from previous outlook for $49.3 billion to $50.8 billion. Comparable sales are expected to decline 3% to 6% compared with previous guidance for a 1% to 4% decline. And guidance for adjusted EPS of $8.40 to $9.00 is down from $8.85 to $9.15. The FactSet consensus is for revenue of of $50.174 billion, a comp sales decline of 2.4% and EPS of $8.88. Best Buy shares are down 28.6% for the year to date while the S&P 500 index is down 16.6% for the period.
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