Best Buy's first quarter results highlighted how the retailer has been able to leverage omnichannel sales and a digital pivot to avoid Amazon's cross hairs.
The company reported first quarter non-GAAP earnings of $1.02 a share on revenue of $9.14 billion. GAAP earnings for the quarter were 98 cents a share. Wall Street was looking for non-GAAP first quarter earnings of 86 cents a share on revenue of $9.13 billion.
Online revenue for Best Buy was $1.31 billion in the quarter, or 15.4% of US revenue.
Best Buy recently announced a succession plan where Corie Barry, currently CFO and strategic transformation officer, will take over for Hubert Joly as CEO.
Barry takes over as Best Buy has largely completed its Best Buy 2020 strategy, which revolved around using technology to transform customers' lives and develop more services.
Same store sales were up 1.1% in the first quarter with online sales up 14.5%.
As we look to the full year, we are reiterating the guidance we provided at the beginning of the year. This outlook balances our better-than-expected Q1 earnings, the fact that it is early in the year and our best estimate of the impact associated with the recent increase in tariffs on goods imported from China. Specifically, I am referring to the increase in tariffs from 10% to 25% on the products on the $200 billion List 3 that originally went into effect last September.
In the US, Best Buy said revenue was boosted by GreatCall with gains offset by lower revenue at Best Buy Mobile and 12 large format store closings. Appliances, wearables and tablets showed revenue growth.
For the second quarter, Best Buy is projecting revenue of $9.5 billion to $9.6 billion with same store sales of 1.5% to 2.5% with non-GAAP earnings of 95 cents a share to $1 a share.
As for the fiscal year, Best Buy reiterated that revenue will be between $42.9 billion to $43.9 billion with same store sales of 0.5% and 2.5% with non-GAAP earnings of $5.45 to $5.65 a share.
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