By Natalie DeCoste
Electronics retailer giant Best Buy’s earnings for the first fiscal quarter of 2021 showed significant consumer spending on electronics.
The company announced its earnings for the 13-week first quarter ending May 1. The report showed that Enterprise Comparable Sales increased 37.2% from the same quarter the previous year. Much of this growth is attributable to the stimulus-fueled spending spree on consumer electronics.
“Customer demand for technology products and services during the quarter was extraordinarily high. 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. The demand was also bolstered by government stimulus programs and the strong housing environment,” said Corie Barry, Best Buy’s CEO.
Consumer electronics made up 30% of the revenue mix for the quarter, up 2% from the previous year, while computing and Mobile Phones made up 44%, down from 48%.
Revenue overall for the company beat expectations at $11.64 billion rather than the $10.44 billion the company projected.
The company also experienced online sales growth, a common occurrence for businesses as the pandemic drove consumers online. Online sales were 33% of domestic sales during the quarter, compared to 15% two years ago.
The impressive start to the year lifted the retailer’s expectations for the first half of the year. CFO Matt Bilunas said he expects same-store sales to grow 3% to 6% this year. He previously expected sales would range from a decline of 2% to a growth of 1%.
The pandemic has been a driving force behind Best Buy’s recent success, ushering in a wave of new customers for the company. During the earnings call, Barry said that new customer growth is about 50% higher than pre-pandemic levels. These new customers have a different demographic than typical Best Buy customers as they are slightly younger, slightly more female, and slightly lower income.
“It has become evident throughout the pandemic that technology is even more important to people’s lives, and we are excited about what that means for our business going forward, especially in combination with both the heightened technology innovation that supports the more home-based way of work and life and our unique ability to inspire and support our customers,” said Barry.