Best Buy sidesteps retail apocalypse, surges on earnings beat

Best Buy‘s stock climbed 11% to $US56.08 a share after the company reported first-quarter same-store sales that beat analyst estimates.

Comparable sales for the quarter climbed 1.6%, exceeding consensus forecasts that called for a 1.5% contraction. The electronics retailer also reported first-quarter profit of $US0.60 per share, outperforming the average analyst estimate of $US0.40 per share and beating even the most optimistic forecast.

“Compared to expectations going into the quarter, our revenue was higher due to strong performance in gaming, a better-than-expected result in mobile, and the improvement of overall sales trends due to the arrival of delayed federal tax refund checks,” CEO Hubert Joly said in a statement.

A boost to the company’s stock is more good news for shareholders that have seen the stock climb 18% so far this year, hitting a more than nine-year high on April 27.

Beyond Best Buy and a few other outliers, it hasn’t been pretty for brick-and-mortar shops. In addition to a rash of store closings, Sears is also battling dwindling inventory, while its CEO publicly battles one of the department store’s biggest tool vendors. Macy’s is shutting stores at a rapid clip. Even billionaire investor Warren Buffett has piled on.

NOW WATCH: This is what Bernie Madoff’s life is like in prison

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.