Best Buy’s (NYSE: BBY) Q1 2018 results are in and Wall St. is pleased. The company reported domestic sales increased by 1.6 percent to $7.9 billion, primarily driven by an increase in online sales of 22.5 percent. Since the announcement, the stock price rose nearly 13 percent in pre-market trading to over $56 per share. The results were enough for the No. 2 company in the CE Pro 100 to boost its full-year outlook growth from 1.5 percent up to 2.5 percent domestic revenue growth.
“We are pleased today to report strong top and bottom line results for the first quarter of fiscal 2018,” says Hubert Joly, Best Buy chairman and CEO. “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.”
Joly continues, “We grew our Enterprise comparable sales by 1.6 percent during the quarter, driven by growth in both the Domestic and International segments. We also continued to drive significant growth in the online channel – with Domestic online comparable sales increasing 22.5 percent. On the profitability side, at the Enterprise level, we continued to optimize merchandise margins and exercise good expense management.”
Joly adds, “Compared to our expectations going into the quarter, our revenue was higher due to strong performance in gaming, a better-than-expected result in mobile, and the improvement of overall sales trends due to the arrival of delayed federal tax refund checks.”
Joly concludes, “We are energized about our opportunities and the strategy we are pursuing. We believe we are uniquely positioned to help our customers in a meaningful way with our combination of multi-channel assets – including our online, store and in-home capabilities, and I love how our teams are mobilized to deliver on our mission and Build the New Blue.”
Best Buy CFO Corie Barry comments, “For the full year, which as a reminder has an extra week, we are updating our topline guidance to reflect the better-than-expected first quarter results and our second quarter guidance. We are now expecting revenue growth of approximately 2.5 percent versus our original guidance of approximately 1.5 percent.”
Best Buy’s domestic profit for the quarter fell to 23.6 percent, down from 25.4 percent last year. The company explained that was due to various one-time costs related to property and “equipment impairments.”
The specific performance of Best Buy's installation divisions within Magnolia and Geek Squad were not mentioned in the quarterly report. The reported an amazing 5 million in-home installation appointments last year.