Best Buy stock jumps off strong earnings report
(FOX 9)
RICHFIELD, Minn. (FOX 9) - Best Buy stock was up on Thursday after the company reported a strong first-quarter earnings report.
Best Buy earnings report
What we know:
Best Buy reported a strong earnings report on Thursday that CEO Corie Barry described as "better than expected."
The company saw a 2% increase in comparable sales, a 38% increase in diluted earnings per share, and an 11 percent increase in adjusted earnings per share.
Barry said the strong numbers were primarily driven by the company's Best Buy Ads and Marketplace initiatives along with major products like gaming, computers, and mobile phones, and services.
Best Buy also saw strong international growth, including revenue increases of 7.3%.
Dig deeper:
Best Buy Ads is an advertising sales platform that allows businesses to buy, manage, and run ad campaigns.
Best Buy Marketplace is a third-party online marketplace similar to what Amazon or Walmart offer.
Best Buy Ads launched in 2022 and Best Buy Marketplace only launched last year.
Best Buy stock jumps
By the numbers:
Best Buy's stock price opened up 10% before rising to up 14% by 9 a.m.
What they're saying:
"Thanks to our incredibly dedicated employees, we are delivering on our strategy to strengthen our position in retail as a leading omni-channel destination for technology while at the same time scaling new profit streams like Best Buy Ads and Marketplace that we expect to provide considerable benefit over time," Barry said in a news release.
Big picture view:
The company also announced Thursday a dividend of 96 cents per share and stock buybacks. The company plans to buy $300 million in stock purchases during the 2027 fiscal year.
The dividend will be issued on July 9.
Best Buy holds guidance
The other side:
Despite the solid earnings beat, not all was rosy for the company. Best Buy did report drops in its legacy businesses: appliance sales (down 13.6%) and consumer electronics (down 2.7%).
Despite the strong quarter, the company did not change its guidance, anticipating flat growth year-to-year.
The backstory:
Last month, the company announced CEO Corie Barry would step down at the end of October and be replaced by Chief Customer, Product and Fulfillment Officer Jason Bonfig, who oversees Best Buy Ads.
Earlier this month, FOX 9 learned that Best Buy would be bringing hybrid employees back to the office for a four-day work week while allowing Fridays to be an optional work-from-home day. Officials cited Mondays as being critical for growth strategy.