Enterprise level same-store sales rose 3.8% year over year in the second quarter, after declining by 2.2% in the same quarter a year ago. In the United States, same-store sales rose by the same amount. All Canadian store revenue has been removed from the comparable sales base and the company’s International division no longer has a comparable metric, and it will not have until the International division is again comparable on a year-over-year basis. We take that to mean at the end of the first quarter of fiscal 2017.
Adjusted operating income is now forecast to be flat to down 20 basis points. Best Buy’s chief financial officer also said that revenue growth for the fiscal year is expected to range from down by low-single digits to flat. The forecast is an improvement on the one the company gave at the end of the first quarter.
Hubert Joly, the company’s CEO, said:
As we look forward, while we are cognizant of the recent financial market turbulence, we believe the combination of an opportunity-rich environment and the strength of our competitive advantages leads us to have a positive outlook about our future prospects, starting with the important back-to-school third quarter.
Shares traded up about 13% in Tuesday’s premarket session to $33.10, in a 52-week range of $28.32 to $42.00. Thomson Reuters had a consensus analyst price target of around $42.60 before the results were announced, with a high target of $40.95.
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