Best Buy (NYSE:BBY) surpassed Wall Street’s revenue and earnings expectations for the holiday quarter on Thursday, even as the retailer navigated through a period of tepid consumer electronics demand and guided for a softer year ahead.
For this fiscal year, Best Buy anticipates revenue will range from $41.3 billion to $42.6 billion. That would mark a drop from the most recently ended fiscal year, when full-year revenue totaled $43.45 billion. It said comparable sales will range from flat to a 3% decline.
One challenge that will affect sales in the year ahead: it is a week shorter. Best Buy said the extra week in the past fiscal year lifted revenue by about $735 million and boosted diluted earnings per share by about 30 cents.
In a news release Thursday, CEO Corie Barry said Best Buy expects the coming year to be one “of increasing industry sales stabilization.”
She said the company is “focused on sharpening our customer experiences and industry positioning,” along with driving up its operating income rate. That metric is expected to improve in the coming year, as Best Buy benefits from changes to its annual membership program, a newer moneymaker for the retailer.
Shares of BBY rose $5.13, or 6.4%, to $84.81 following the report.
