Best Buy Cruises Past Earnings Expectations in Q1
Ahead of the opening bell on Thursday, Best Buy shared the results of their FY 2018 Q1, which ended April 29. The short of it is this: Their Q1 2018 earnings report was a huge success. Against expectations that shares would rise around $0.40 against a revenue decline of around 1.7 percent, the company reported it beat expectations by $0.20 per share on a domestic comparable revenue gain year-over-year by 1.4 percent. The gain was driven by a 4.6 percent comparable sales bump in appliances and 11.3 percent bump in entertainment sales.
“We are pleased today to report strong top and bottom line results for the first quarter of fiscal 2018,” Hubert Joly, Best Buy chairman and CEO, said in a statement. “Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy. I want to thank all our associates across the company for their hard work in delivering these results.”
On top of the strong category increases, Joly also credited the strong performance to the arrival of delayed federal tax refund checks. Further, he credited the shift in strategy that resulted from the previous quarter's results. At the time and heading into Q1 2018, Joly said that Best Buy's growth plan moving forward was centered around three pillars, one of which was to provide services and solutions that solve real customer needs. Joly promised at the time that Best Buy would make investments in people and systems to execute the new strategy, which seems to have helped.