Best purchase (Bby) revolves around a three -year drop in sales growth.
On Tuesday, before the opening of the market, the electronics retailer announced results of the fourth quarter who beat the expectations of the Wall streets. Sales with comparable stores jumped 0.50% compared to the reduction of 1.45% planned. This comes after 12 consecutive quarters of Negative growth in comparable store sales.
“I am happy to report the best than expected sales for the fourth quarter motivated by strong growth in IT as well as improved sales performance in other categories,” CEO Best Buy, CEO in the press release said.
During the coming fiscal year, the company provides for a turnover of $ 41.4 billion to $ 42.2 billion. Wall Street expected $ 41.69 billion. Sales with comparable stores should be stable to increase by 2.0%, against an increase of 1.44%.
The profit -adjusted profit should be $ 6.20 to $ 6.60; Wall Street had estimated $ 6.55. Directives do not include the impact of prices.
The replacement cycle is embarking on laptops, laptops and phones, especially as innovation around AI ramps. Evercore analyst Greg Melich described the year as “Sweet Spot” for the replacement cycle of four to five years since the start of the series of pandemic expenses in 2020.
“We continue to see a consumer ready to spend for high prices products when they need it or when there is a technological innovation,” said the director Matt Bilunas in the press release.
In pre-marketing, shares are slightly decreased when investors digest better than expected figures, but also consider the Uncertainty of prices and inflation continues. From the closing of the market on Monday, Best Buy’s shares increased by almost 5% over a year, before S&P 500 (^ GSPC) 1.2% gain.
Here is what Best Buy published in the fourth quarter, compared to Bloomberg estimates:
Profit adjusted by action: $ 2.58, against $ 2.40
Net sales: $ 13.95 billion, compared to $ 13.69 billion
Sales growth in comparable stores: 0.50%, against -1.45%
Total sales growth at stores comparable to the United States: 0.20%, against -1.34%
Sales growth for:
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Appliances: -11.40%, against -8.9%
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Entertainment: -10.90%, against -7.47%
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Consumer electronics: -2.20%, against -4.38%
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IT and mobile phones: 6.50%, against 4.13%
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Services: 9.90%, against 4.38%
International: 3.80% against -1.95%
The company also shared results in full year.
For the exercise, sales with comparable stores dropped by 2.3%, less than the previous range previous for a drop from 2.5%to 3.5%. The street expected a decrease of 2.93%.
Turnover was $ 41.53 billion above the 41.1 billion dollar directives for $ 41.5 billion. The profit adjusted by share came from $ 6.37, compared to the orientation range from $ 6.10 to $ 6.25.
