Best Buy (BBY) posted results third quarter results beat Wall Street estimates and the company raised its full-year outlook on Tuesday as it heads into the heart of the crucial holiday shopping season.
The company reported same-store sales that rose 2.7% in the third quarter, ahead of the 1.6% expected by analysts, according to Bloomberg data. Adjusted earnings per share came in at $1.40, ahead of the $1.30 expected, on revenue of $9.67 billion, more than the $9.58 billion analysts were looking for.
Best Buy also said Tuesday it expects same-store sales for the full year to grow in the 0.5%-1.2% range, up from the previously expected range of a 1% decline to a 1% increase.
Best Buy stock rose as much as 3% in premarket trading after the results.
Its US same-store sales rose 2.4%, while online same-store sales rose 3.5%, and international same-store sales jumped 6.3%. All three were an improvement from last year, when sales fell across the board.
Corie Barry, Best Buy CEO said in the release sales were driven by “strong results across computing, gaming and mobile phones”
Best Buy also forecast revenue in the range of $41.65 billion to $41.95 billion, up from the previous range of $41.1 billion-$41.9 billion, while adjusted earnings per share are expected to come in between $6.25-$6.35, higher than the previous range of $6.15-$6.30.
CFO Matt Bilunas said in the release, “we are raising our full year forecast to reflect the strong Q3 results and our current outlook for Q4.”
For the fourth quarter, the company expects same-store sales growth in the range of a 1% decline to a 1% increase and adjusted operating income rate in the range of 4.8%-4.9%.
Last quarter, Barry told Yahoo Finance that a combination of innovation and replacement cycles was finally coming to fruition to boost its sales, especially in computing, mobile phones, wearables, and headphones.
“These are products that people will want to upgrade and replace, and innovation is what sparks our business,” Barry said. “It has taken some time for those two things to intersect, but I do think the growth that you saw in this quarter is part of those two things coming together.”
She noted that customers in the market to replace items have been willing to pay more for upgrades as they look to “future-proof” their tech in anticipation of further AI enhancements.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
Click here for all of the latest retail stock news and events to better inform your investing strategy
