© Reuters. A poster marks a Best Buy store in Boston, Massachusetts, USA, on May 26, 2021. REUTERS / Brian Snyder
Per Uday Sampath Kumar
(Reuters) -Best Buy Co. Inc. on Tuesday said strong sales of home theater systems and computer equipment to work from home despite market fears of a downturn fueled by a pandemic, prompted it to raise forecasts of comparable annual sales, increasing its shares by 5%.
Consumer electronics retailer sales rose last year when Americans, constrained by home orders due to the COVID-19 pandemic, rushed to buy laptops and other accessories. computer for your offices and remote learning settings.
Best Buy claimed that sustained demand, as well as government stimulus to boost the pandemic-hit economy and improving wages, helped raise comparable second-quarter sales by 20%.
The company also expects a smaller-than-expected drop in comparable third-quarter sales.
To anticipate supply chain bottlenecks that have affected manufacturers and retailers in all industries, Best Buy said it was stocked with “as much inventory as possible” during the second quarter. and is confident it will avoid empty shelves during the crucial holiday season.
It raised the forecast for comparable full-year sales growth from 9% to 11% from 3% to 6%.
“Our original perspectives reflected a scenario in which customers were picking up or accelerating spending in areas that slowed during the pandemic, such as travel and dinners,” said Best Buy chief financial officer Matthew Bilunas.
“While we see some change in consumer spending, the impact has been less pronounced.”
The upward revision of its guidelines reflects Best Buy’s expectations that the sales seasons for back-to-school / college and holiday sales will be robust, said Moody’s (NYSE 🙂 vice president Charlie O’Shea.
The company earned a tight $ 2.98 per share in the second quarter, beating analysts ’average estimate of $ 1.85 per share, according to Refinitiv’s IBES data.
Best Buy Tuesday also said it expects to close about 30 U.S. stores this year, compared to about 20 annual closures over the past two years.
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