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Best Buy said Thursday revenue and revenue fell in the first quarter, despite an initial rush of shopping as customers set up their home offices and prepared children to attend school remotely during the pandemic.
The salesman’s sales were also affected later in the quarter, as he decided to close stores to customers and move only to restricting the truck outside. He also temporarily suspended all internal installations and repairs.
Shares of Best Buy fell 2.6% in pre-market trading.
CEO Corie Barry advertises the company̵
“Strong sales retention is a testament to the strength of our multi-channel capabilities and the strategic investments we have made over the past few years,” she said in a news release.
Online sales rose 154.4 percent in the United States from a year earlier, but this was the only way for customers to shop at Best Buy.
Here is what Best Buy reported for the first quarter ended May 2:
- Earnings per share: 67 cents, adjusted
- Revenue: $ 8.56 billion
- Sales in the same store: a decrease of 5.3%
Best Buy said first-quarter net income fell to $ 159 million, or 61 cents a share, from $ 265 million, or 98 cents a share, a year earlier. Excluding items, Best Buy earned 67 cents a share. According to analysts, Best Buy will earn 44 cents per share according to Refinitiv.
The company’s revenue fell to $ 8.56 billion, from $ 9.14 billion a year earlier, beating analysts’ estimate of $ 8.16 billion.
Sales in the same Best Buy store decreased by 5.3%. Analysts estimate that sales in the same store will fall by 10%.
Domestic sales in the same store decreased by 5.7%. International sales in the same store decreased by 0.2%.
Retailers had a wave of sales at the start of the coronavirus pandemic as customers bought kitchen appliances, computer monitors and other items to help them work, cook and study during a long stay at home.
In mid-March, Best Buy withdrew its financial prospects for 2021. He also withdrew the full amount of his revolving $ 1.25 billion credit facility and stopped all stock repurchases.
Chief Financial Officer Matt Bilunas said the company did not provide guidance on Thursday due to uncertainty surrounding Covid-19.
“We continue to think about how to manage our profitability and liquidity, balancing our short-term decisions to navigate this unprecedented situation, while maintaining the elements of our strategy that will ensure that we remain a viable company in the future,” he said. news release.
The company closed its stores to customers in late March, but continued to sell online and offer curbs. In mid-April, however, Barry said the company would employ about 51,000 people and take other measures to cut costs.
Best Buy started opening some of its stores for customers in early May, but only by prior arrangement. Its staff have stepped up security measures, including wearing masks and gloves, escorting each customer to a social distance and deleting anything they click on.
Read the full press release here.