- Best Buy says that TV sales and home installations soared for the first quarter earnings.
- Best Buy CEO Corie Sue Barry contributes this spike to housing sales and home improvements.
- Revenue for Best Buy is up 27% compared to the first quarter of fiscal year 2020.
- See more stories on Insider’s business page.
Best Buy says that there has been an increase in TV sales and at-home installations for the first quarter of 2021.
“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,” CEO Corie Sue Barry said during the company’s earnings call on Thursday. Barry also added that the increase in sales could be due to “government stimulus programs and the strong housing environment.”
The housing market is in fact booming right now, and some reports have even compared the current climate to the housing bubble that occurred in the early 2000’s before the crash in 2008, as Insider previously reported. Some sellers have even experienced their homes selling at record speed.
Overall in the first quarter, Best Buy sales rose 37%, and earnings per share growth rose 230%. Revenue for Best Buy is up 27% compared to the first quarter of fiscal year 2020.
The biggest factors contributing to increased sales were home theater items, computers, and other appliances. But going forward Best Buy doesn’t have much confidence that the boom will continue. Barry said in a statement on Tuesday that the government stimulus payments provided consumers with a level of confidence and without future payments there could be a “lack of confidence” from consumers, according to CNN.
The chain reported earnings of $2.23 per share in the first quarter, a large beat on analyst estimates of $1.39. The firm also topped revenue expectations and raised its outlook for same-store sales growth, helping its shares rise about 1.8% in trading Thursday.
Revenue was expected at $10.44 billion, but the company exceeded that estimate as well, raking in $11.64 billion, according to CNBC.