Best Buy Q2 Profit Tops Estimates; Raises FY22 Enterprise Comps. Growth Outlook

bestbuy aug24 lt

Best Buy Co., Inc. (BBY) said it recorded an operating income growth of 40% year-on-year, and comparable sales growth of 19.6% for the 13-week second quarter ended July 31, 2021. The company noted that customer demand for technology products and services during the quarter remained very strong.

For the second half of fiscal 2022, the company expects comparable sales to be in the range of flat to down 3% versus last year, compared to previous annual outlook that implied a high single-digit decline. For fiscal 2022, the company now expects enterprise comparable sales growth of 9% to 11%, revised from the prior outlook of 3% to 6% growth. Best Buy said, over the longer term, the company is fundamentally in a stronger position than expected two years ago.

Corie Barry, Best Buy CEO, said: "We are lapping an unusual quarter last year as our stores were limited to curbside service or in-store appointments for roughly half the quarter. When we compare to two years ago, our results are also very strong. Compared to the second quarter of fiscal 2020, revenue is up 24% and our operating income has more than doubled."

Second-quarter non-GAAP earnings per share increased to $2.98 from $1.71, a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $1.85, for the quarter. Analysts' estimates typically exclude special items.

Second-quarter net earnings increased to $734 million from $432 million, prior year. GAAP EPS Increased 76% to $2.90. Excluding a $0.47 benefit from a lower year-over-year effective tax rate, GAAP and non-GAAP earnings per share increased approximately 47%.

Second-quarter revenue increased to $11.85 billion from $9.91 billion, last year. Analysts expected revenue of $11.49 billion, for the quarter. Domestic revenue of $11.01 billion was up 20.6% from last year.

For fiscal 2020, the company expects enterprise revenue of $51.0 billion to $52.0 billion. Analysts expect the company to report revenue of $49.3 billion.

For third-quarter, the company estimates enterprise revenue of $11.4 billion to $11.6 billion. Enterprise comparable sales is projected to decline in a range of 1% to 3%. Analysts expect the company to report revenue of $10.55 billion.

The company's board of directors has authorized the payment of a regular quarterly cash dividend of $0.70 per common share. It is payable on October 5, 2021, to shareholders of record as of the close of business on September 14, 2021.

Shares of Best Buy Co. were up 4% in pre-market trade on Tuesday.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT