Best Buy misses first quarter EPS by $0.06

Best Buy (NYSE: BBY) recorded an EPS of $1.57 in the first quarter of the 2022 financial year, which was 6 cents less than the $1.63 analyst estimate. Total revenue in the first quarter came to about 410.65 billion, which was more than the $10.44 billion consensus estimate.

The company reported an 8% drop in Comparable sales. It expects an EPS of between $8.40 to $9.00 in the 2023 financial year, which should be in the range of the $8.90 consensus estimate. It also believes it will record a total revenue of between $48.3 to $48.9 billion in the same year, less than the $50.12 billion consensus estimate.

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Management statements

Best Buy Chief Executive Officer, Corrie Barry, claims that consumer demand for tech services and products during the first quarter was incredibly high.

The CEO said:

This demand is being driven by continued focus on the home, which encompasses many aspects of our lives including working, learning, cooking, entertaining, redecorating and remodeling. The demand was also bolstered by government stimulus programs and the strong housing environment.

Mr. Barry said that their teams across the company met that growing demand with exceptional execution. From their Geek Squad and Blue Shirt agents on the front lines to their supply chains and merchant teams, theirs workers showed they could handle extraordinary volumes.

Corrie continued:

It has become evident throughout the pandemic that technology is even more important to people’s lives, and we are excited about what that means for our business going forward, especially in combination with both the heightened technology innovation that supports the more home-based way of work and life and our unique ability to inspire and support our customers.

Financial outlook

Matt Bilunas, Best Buy Chief Financial Officer claimed that the financial year started out way stronger than what the company originally expected. He confirmed that the sales momentum seemed to be continuing into the second quarter of the 2022 financial year.