Best Buy $BBY ( ▲ 1.66% ) beat Wall Street’s expectations on Tuesday, proving that Americans still have room in the budget for new gadgets even as concerns swirl about weakening consumer sentiment.
The retailer posted $9.67 billion in sales, slightly ahead of the $9.57 billion analysts were expecting. Same-store sales rose 2.7 percent, beating forecasts for 1.5 percent growth, and adjusted earnings per share clocked in at $1.40 versus the $1.31 consensus estimate.
Management nudged full-year guidance higher. Best Buy now expects up to $41.95 billion in sales, modestly above its prior outlook. It sees comparable sales rising as much as 1.2 percent and adjusted earnings per share reaching up to $6.35, both slightly above earlier projections.
CEO Corie Barry said the company is benefiting from customers upgrading or replacing electronics at the same time innovation cycles are speeding up.
The backdrop remains mixed across retail. Walmart $WMT ( ▲ 1.96% ) recently beat expectations, while Target $TGT ( ▲ 3.72% ) and Home Depot $HD ( ▲ 1.25% )
have warned that shoppers are getting more selective. For Best Buy, though, the upgrade cycle is still alive and well.