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BBY

Best Buy Reports 1Q Revenue Increase

Best Buy reported first-quarter revenue of $8.94 billion, up from $8.77 billion a year earlier, while comparable sales rose 2.0% after falling 0.7% in the prior-year quarter.

Diluted earnings per share climbed to $1.31 from $0.95, a 38% increase. Adjusted diluted EPS rose to $1.28 from $1.15, up 11%.

Operating income margin widened to 4.1% from 2.5% a year ago. On an adjusted basis, operating income margin increased to 4.1% from 3.8%.

By segment, domestic revenue increased to $8.25 billion from $8.13 billion. Domestic comparable sales increased 1.8% versus a 0.7% decline last year. Domestic online revenue rose 1.4% on a comparable basis, and online revenue remained 31.7% of total domestic revenue, unchanged from a year ago.

Domestic gross profit rate improved to 23.7% from 23.5%. Domestic adjusted SG&A increased to $1.60 billion from $1.58 billion, but edged down as a share of revenue to 19.3% from 19.4%.

International revenue rose to $687 million from $640 million. International comparable sales increased 4.7%, reversing a 0.7% decline in the prior-year quarter. International gross profit rate slipped to 21.5% from 22.0%. International adjusted SG&A increased to $143 million from $137 million, though it fell to 20.8% of revenue from 21.4%.

Best Buy said it returned $202 million to shareholders through dividends in the quarter. It also reduced restructuring charges to a $9 million benefit from $109 million of charges a year earlier.

For the full year, the company reiterated revenue guidance of $41.2 billion to $42.1 billion and adjusted diluted EPS guidance of $6.30 to $6.60. Following these announcements, the company's shares moved 12.71%, and are now trading at a price of $72.74. For more information, read the company's full 8-K submission here.

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