Best Buy erases gains after CEO says strong sales are not a 'new normal'
Best Buy shares reversed earlier gains after CEO Hubert Joly said on the earnings call that the same-store sales results, which topped forecasts, did not represent a "new normal," according to Bloomberg.
The shares fell 3% to $60.39 after earlier rising by as much as 2.8% in premarket trading.
Best Buy's sales at established stores rose 5.4 percent in the second quarter ended July 29, besting analysts' average expectation for a 2.1 percent increase, according to Consensus Metrix.
Best Buy's U.S. online comparable sales surged about 31 percent, compared to a year-earlier growth rate of 23.7 percent, as faster shipping and improvements to its checkout process and search functionality drew more shoppers.
The company said it now expects full-year revenue to rise about 4 percent, compared to an earlier forecast of a 2.5 percent increase.
Net income attributable to Best Buy rose to $209 million, or 67 cents per share in the second quarter, from $198 million, or 61 cents per share, a year earlier.
Excluding one-time items, Best Buy earned 69 cents per share, beating analysts' estimates of 63 cents, according to Thomson Reuters I/B/E/S.
Richfield, Minnesota-based Best Buy's net sales climbed 4.8 percent to $8.94 billion. Analysts had expected $8.66 billion.
(Reuters reporting by Vibhuti Sharma in Bengaluru; Editing by Sai Sachin Ravikumar)