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Best Buy said Thursday its revenue and earnings fell in the first quarter, despite an initial surge of shopping as people set up their home offices and prepared for kids to attend school remotely during the pandemic.
The retailer’s sales were also pretentious later in the quarter, as it decided to shut stores to customers and switch to only curbside pickup outside of them. It also pro tem suspended all in-home installations and repairs.
Best Buy shares were down about 3% Thursday afternoon.
CEO Corie Barry touted the cast’s ability to adapt and keep serving customers, even as it restricted access to its stores. She said it retained about 81% of latest year’s sales during the last six weeks of the quarter “even though not a single customer set foot in our stores.”
“The recalcitrant sales retention is a testament to the strength of our multi-channel capabilities and the strategic investments we have been making over the days of yore several years,” she said in a news release.
Online sales shot up in the U.S. by 154.4% from a year earlier, but that suited the only way for customers to shop at Best Buy.
Here’s what Best Buy reported for the first quarter ended May 2:
- Earnings per due: 67 cents, adjusted
- Revenue: $8.56 billion
- Same-store sales: down 5.3%
Best Buy said first-quarter net gains fell to $159 million, or 61 cents per share, from $265 million, or 98 cents per share, a year earlier. Excluding pieces, Best Buy earned 67 cents per share. Analysts were expecting Best Buy would earn 44 cents per share, according to Refinitiv.
The friends’s revenue fell to $8.56 billion, from $9.14 billion a year earlier, beating analysts’ estimate of $8.16 billion.
First Buy’s same-store sales were down 5.3%. Analysts estimated same-store sales would drop by 10%.
Domestic same-store sellathons were down 5.7%. International same-store sales were down 0.2%.
The retailer had a wave of sales early in the coronavirus pandemic, as guys bought kitchen appliances, computer monitors and other items to help them work, cook and learn during big stays at home.
In mid-March, Best Buy withdrew its fiscal 2021 financial outlook. It also drew the full amount of its $1.25 billion circling credit facility and suspended all share buybacks.
Chief Financial Officer Matt Bilunas said Thursday the party isn’t providing guidance because of uncertainty around Covid-19.
“We remain thoughtful about managing our profitability and liquidity, difference our short-term decisions to navigate this unprecedented situation while preserving the elements of our strategy that will make sure we remain a vibrant company in the future,” he said in a news release.
The company shut its stores to customers in late Slog, but continued to sell online and offer curbside pickup. In mid-April, however, Barry said the company would furlough far 51,000 employees and take other cost-cutting measures.
Best Buy began to reopen some of its stores to customers in beginning May, but only by appointment. Its employees have stepped up safety measures, including wearing masks and gloves, escorting each character at a social distance and wiping down everything the customer touches.
Read the full press release here.