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Best Buy’s shares fall as online sales growth declines in its first quarter

The electronics retailer's same-store sales jumped more than 7%, surpassing analyst growth estimates
Best Buy storefront logo
Shares of the electronics giant were down in Thursday morning trading

Best Buy Co Inc (NYSE:BBY) announced better-than-expected first quarter earnings, but slowing online growth dragged down shares.

The electronic giant reported earnings of US$0.72 per share on revenue of US$9.10bn compared with US$0.60 EPS on revenue of US$8.5bn in the previous year’s first quarter.

Adjusted earnings were US$0.82, beating analyst estimates of US$0.74 per share. Revenue exceeded estimates of US$8.74bn.

Net income rose more than 10% to US$208mln compared with US$188mln a year earlier.

READ: Amazon, Best Buy team up to sell smart TVs

“We are excited by our momentum and continue to believe we are operating in an opportunity-rich environment driven by technology innovation and customers’ need for help. We are focused on providing services and solutions that solve real customer needs, and on building deeper customer relationships. We are investing in technology, people and supply chain in support of our strategy,” said CEO Hubert Joly in a press release.

Online sales growth slowed down to 12% compared with 22.5% growth in last year’s first quarter.

Same-store sales grew 7.1% beating consensus estimates of 2.5% growth.

For the second quarter, the retailer expects same-store sales to increase by another 3% to 4% versus estimates of 1.7% growth.

The company predicts second-quarter earnings between US$0.77 and $0.82 per share on revenue between US$9.1bn and US$9.2bn versus estimates of US$0.82 EPS on revenue of US$9.04bn.

Shares of the Minnesota-based company fell more than 5% to US$71.96 in Thursday morning trading.

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