Best Buy was one of the biggest gainers in Thursday’s trading and hit an all-time intra-day high after the company reported a surprising growth of 1.6% at its established locations. The Street was not expecting this as the company said in March that same-store sales could fall by 1 to 2 percent. The growth even beat the 1.5% that analysts according to
Thomson Reuters estimates, had been looking for.
According to CEO Hubert Joly. the increase was linked to anticipated delayed federal tax refund checks.
Joly commented, “We delivered a strong performance in gaming due to robust customer demand and good product allocations for the new hardware that launched during the quarter.”
“Second… while mobile was not a growth area due to last year’s product recall and the fact that new phones launched later in the quarter than they did last year, sales in [the first] quarter were better than we expected as new unlimited data plan offers from the carriers generated increased demand across devices.”
Looking ahead, the company now sees sales to grow 1.5 to 2.5% in the second quarter.
Disclaimer: We have no position in Best Buy Co Inc. (NYSE: BBY) and have not been compensated for this article.