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Best Buy stated Thursday that its income and earnings fell in the first quarter, regardless of an initial surge of buying as clients arrange their house places of work and ready for youths to attend faculty remotely during the pandemic.
The retailer’s sales had been additionally affected later in the quarter, because it determined to close shops to clients and change to solely curbside pickup outdoors of them.
Best Buy shares fell about 2% in premarket buying and selling Thursday.
Here’s what Best Buy reported for the first quarter ended May 2:
- Earnings per share: 67 cents, adjusted
- Revenue: $8.56 billion
- Domestic same-store sales: down 5.7%
Best Buy stated first-quarter internet earnings fell to $159 million, or 61 cents per share, from $265 million, or 98 cents per share, a 12 months earlier. Excluding some gadgets, Best Buy earned 67 cents per share. Analysts had been anticipating Best Buy would earn 44 cents per share, in line with Refinitiv.
The firm’s income fell to $8.56 billion, from $9.14 billion a 12 months earlier, beating analysts’ estimate of $8.16 billion.
Domestic same-store sales had been down 5.7%. Analysts estimated same-store sales would drop by 10%.
The retailer had a wave of sales early in the coronavirus pandemic, as clients purchased kitchen home equipment, laptop screens and different gadgets to assist them work, cook dinner and be taught during lengthy stays at house.
In mid-March, Best Buy withdrew its fiscal 2021 monetary outlook. It additionally drew the total quantity of its $1.25 billion revolving credit score facility and suspended all share buybacks.
The firm shut its shops to clients in late March, however continued to promote on-line and provide curbside pickup. In mid-April, nonetheless, Best Buy CEO Corie Barry stated the corporate would furlough about 51,000 workers and take different cost-cutting measures.
Best Buy started to reopen a few of its shops to clients in early May, however solely by appointment. Its workers have stepped up security measures, as they put on masks and gloves, escort every buyer at a social distance and wipe down all the things the client touches.