Best Buy lifts profit guidance after Q2 comparable sales beat

29th Aug 2024 12:41

(Sharecast News) - Best Buy hiked its profit forecast for the year on Thursday, amid a positive shift in consumer demand for electronics.

The US retailer said it now expected adjusted earnings per share to reach as high as $6.35, up from a previous estimate of $6.20, citing stronger-than-anticipated profitability in the first half of the year.

Despite that, Best Buy still lowered its annual comparable sales outlook, projecting a 1.5% decline, down from an earlier prediction of flat growth.

In the second quarter, Best Buy reported a smaller-than-expected decline in comparable sales, with domestic comparable sales down 2.3%, bolstered by strong performance in the US computing and tablet sectors.

The company's adjusted earnings per share also surpassed Wall Street expectations, as its GAAP diluted earnings per share rose to $1.34, from $1.25 a year ago.

Chief executive officer Corie Barry noted that while consumers were being cautious, they were still willing to invest in high-priced technology when the products offered compelling new features or met essential needs.

Barry highlighted that as shoppers continued to prioritise essentials, they were also making selective purchases of innovative technology, which could benefit Best Buy in the coming years as products like artificial intelligence-powered computers and new iPads from Apple were released.

At 0754 EDT (1254 BST), shares in Best Buy Co were up 7.07% in premarket trading in New York, at $94.00.

They had closed down 1.23% ahead of the results on Wednesday, at $87.79.

Reporting by Josh White for Sharecast.com.