Best Buy $BBY +2.09% reported first-quarter results on Thursday that beat analyst expectations, with comparable sales rising 2% — reversing a streak of declines and coming in above the company's own forecast of 1% growth for the quarter.
Revenue for the period ended May 2 reached $8.94 billion, up from $8.77 billion a year earlier. Net income rose to $276 million, or $1.31 per diluted share, compared with $202 million, or 95 cents per share, in the year-ago period. Excluding restructuring adjustments, adjusted diluted earnings per share came in at $1.28. Analysts had expected adjusted EPS of $1.23 and revenue of $8.83 billion, according to CNBC.
Best Buy stock rose roughly 7% in premarket trading, according to CNBC.
Gaming, computing, mobile phones and services led domestic comparable sales gains for the quarter, Best Buy said. Appliances weighed on results, with comparable sales in that category dropping 13.6%. The entertainment category posted comparable sales growth of 38.1% domestically.
"Our comparable sales grew 2% versus last year, higher than our outlook, with positive comps across the majority of our major product categories and strong performance in our Best Buy Ads and Marketplace initiatives," CEO Corie Barry said in a statement. "We also drove operating income rate expansion and EPS growth."
