Best Buy's omnichannel bets pay off as Q1 shines

Best Buy is faring well across most categories and channels as same store sales jumped 7.1 percent in the first quarter. That growth is its best since 2005.

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Best Buy is continuing to ace its omnichannel plans. It posted strong first quarter earnings as its same store sales surged 7.1 percent due to demand for mobile devices, smart home, and services.

The retailer, which is a barometer of consumer confidence and tech purchasing, reported first quarter earnings of 72 cents a share on revenue of $9.1 billion. Non-GAAP earnings were 82 cents a share.

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Wall Street was expecting earnings of 74 cents a share on revenue of $8.73 billion.

Best Buy's first quarter same store sales growth was its strongest since fiscal 2005.

The company has bucked the brick-and-mortar retail malaise by moving more orders online, staffing up and providing good experiences. Best Buy said its online revenue in the quarter was $1.14 billion, up 12 percent. Online sales are now 13.5 percent of revenue.

According to Best Buy CEO Hubert Joly, the company saw strong sales across most products and channels. The company is also investing in services such as Total Tech Support.

On a conference call, Joly said that company's purpose is to apply tech by "addressing key human needs in areas such as entertainment, productivity, communication, food preparation, security and health and wellness."

Total Tech Support is another area where Best Buy is hoping to grow. Total Tech Support costs $199 a year for unlimited Geek Squad support via chat, in stores and an app.

The upshot to Best Buy's strategy is that it wants to build long-term relationships with its customers.

As for the second quarter, Best Buy is projecting revenue of $9.1 billion to $9.2 billion, with same store sales growth of 3 percent to 4 percent. Non-GAAP earnings will be 77 cents a share to 82 cents a share.

For fiscal 2019, Best Buy is holding its guidance that calls for revenue of $41 billion to $42 billion with same store sales growth of flat to 2 percent. Best Buy said it isn't updating its full year outlook because it's still early in the year.

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By product category, Best Buy fared well with computing and mobile phones, services and appliances as well as smart home.