This indicated that a turnaround led by CEO Hubert Joly gained some traction, at a time when traditional electronics retailers struggled to grow sales and fend off online competition.
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As online sales rose, so too did revenue at established stores, an important measure of a retailer’s health. Analysts had forecast that so-called same-store sales fell 0.5%, but they rose 0.8%.
Best Buy said sales rose for home theater systems, major appliances and computing products, as well as smartwatches, but declined for mobile phones and gaming.
Analysts on average were expecting revenue of $8.77-billion and a profit of 45 cents per share, according to Thomson Reuters I/B/E/S.
“We saw continued positive momentum in our online sales – delivering a second straight quarter of almost 24 percent growth”, said Chairman and CEO Hubert Joly.
The company said it now expected low-single-digit percentage growth in fiscal-year operating income, compared with a previous forecast of “approximately flat” results.
The largest US consumer electronics retailer also forecast revenue of $8.8-billion-$8.9-billion and a profit of 43-47 cents per share for the third quarter.
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Earnings, adjusted for one-time gains and costs, were 57 cents per share, 15 cents better than Wall Street had projected, according to a poll by Zacks Investment Research. Revenue inched up to $8.533 billion from $8.528 billion, beating the FactSet consensus of $8.392 billion, with domestic and global revenue both topping expectations.
