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Shares in Best Buy surged 10 percent on the numbers, which come
at the end of a year when it and rivals Target Corp and Walmart
Inc have all benefited from the impact of rising wages, low
unemployment and tax cuts on U.S. consumers.
The company said domestic online revenue rose 9.3 percent to
$2.96 billion in the fourth quarter, primarily due to higher
conversion rates and increased traffic.
Best Buy also forecast fiscal 2020 adjusted profit of $5.45 to
$5.65 per share, the mid-point of which was above analysts'
expectations of $5.49.
Best Buy's domestic comparable sales rose 3 percent in the three
months ended Feb. 2. Analysts on average had expected a 2.03
percent rise, according to IBES data from Refinitiv.
The company said comparable sales benefited from growth across
categories such as wearables, appliances, smart home and gaming
but saw declines in mobile phone sales.
Excluding one-time items, the company earned $2.72 per share.
Analysts on average were expecting earnings of $2.57.
Total revenue fell 3.7 percent to $14.80 billion, as the
year-ago quarter had an extra week, but still came above
expectations of $14.70 billion.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by
Shounak Dasgupta and Anil D'Silva)
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