Best Buy's first-quarter sales increased 36%, with electronics being the hottest seller

Recently, Best Buy released its first quarter financial report, which showed that its sales in the first quarter of 2021 increased by 36%, and its net income reached 595 million U.S. dollars, higher than last year's 159 million U.S. dollars. Net sales increased from 8.56 billion U.S. dollars a year ago to 11.64 billion U.S. dollars, exceeding the expected 10.44 billion U.S. dollars.

Online sales rose 37.2%, beating the 22.4% analysts expected in a StreetAccount survey. The company said sales rose in nearly all categories, with home theater, computers and appliances posting the biggest gains.

Best Buy CEO Corie Barry said that as home values ​​rise, more consumers are demanding more home and kitchen appliances, and shopping is stimulating a spending frenzy.

This demand is driven by a continued focus on home, which encompasses many aspects of consumers’ lives, including work, learning, cooking, entertaining, redecorating and remodeling. Government stimulus packages and a strong housing environment also boosted consumer demand.

Among consumers, Best Buy's largest shopping group is millennials, and the total growth of these new customers is about 50% higher than pre-pandemic levels . However, these customers look different: slightly younger, more female, and slightly lower income, that is, millennials.

Best Buy expects same-store sales to rise 3% to 6% this year, Chief Financial Officer Matt Bilunas said. He previously said they ranged from a 2% decline to a 1% increase. However, he said the company expects customers to increase spending in other areas, such as travel and dining out, in the second half of the year.

Best Buy said the company is currently trying to better understand the role of stores in the future and has begun testing different formats. It is trying out a store with a smaller sales floor and a larger backstage to fulfill online orders , leaning more towards e-commerce business and enhancing customers' online shopping experience.

USA

Best Buy

First quarter report