The company beat guidance on revenue and comparable sales during the third quarter.
On Tuesday, Best Buy reported its latest earnings report before market open, and the results couldn’t have been better. The company’s revenue and same-store sales increased, and the company experienced particularly strong domestic growth.
And Best Buy’s digital channels continue to grow and bring in new sales. Best of all, the company boosted its full-year sales on the basis of its strong pre-holiday turnout.
These strong results helped the company hit a new 52-week high this week. Let’s look at what Best Buy did right during the third quarter, and what we can expect from the company going forward.
Here’s what happened during Q3
At one point, Wall Street was predicting that companies like Amazon would soon overtake best Buy. These concerns have faded away as the company continues to deliver strong earnings quarter after quarter.
During the third quarter, Best Buy’s revenue rose 1.8% to reach $9.76 billion. This revenue growth was largely the result of an increase in same-store sales and robust domestic growth.
But the company’s digital growth has been a big factor in its ongoing success as well. Its online sales grew by more than 15% from a year earlier. Best Buy followed in the footsteps of other online retailers by offering a variety of fulfillment options for its customers.
According to CEO Corie Barry, customers can choose free next-day delivery, or they can pick up their item in-store within an hour of placing the order. These fulfillment options should help the company drive more sales during the holiday shopping season.
Best Buy is also expanding its services by offering in-home installation and advisory services to its customers. The company has already seen a major payoff from this; its customer satisfaction ratings have increased, and its sales continue to grow.
Best Buy investors were also pleased to see that the company raised its full-year guidance. The company raised its forecasts on its revenue, comparable sales, and non-GAAP earnings for 2019. This means that Best Buy is on track to end the year strong.
2019 has been a great year for the company, and its shares are up more than 54% year to date. Wall Street reacted positively to the news, and overall, analysts consider the stock a moderate buy going forward.