Best Buy raised its profit outlook for the year after reporting better-than-expected revenue growth in the past three months.
Sales at the consumer electronics chain grew 5 percent to $9.4 billion for the quarter through Aug. 4, while profits rose 16.7 percent to $244 million, the retailer said Tuesday. Comparable store reveue — a key metric for retailers — grew 6.2 percent amid a booming economy spurred by, among other things, the GOP-led tax cuts last year.
While looming threats like President Trump’s trade skirmish with China could hamper earnings in the second half of the year, investors expect the economic momentum to continue and largely mitigate any impact heading into the holiday shopping season.
“As a result of the strong performance in the first half of the year and our updated expectations for the back half, we are raising our full-year sales and earnings guidance,” Chief Executive Officer Hubert Joly said in a statement. The Richfield, Minn.-based retailer now expects enterprise revenue of $42.7 billion or more for the 12 months through January and profits as high as $5.10 per share.
Despite the strong earnings, Best Buy’s stock was down 3.96 percent in pre-market trading in New York.
