Under a cloud of tariffs on Chinese-made goods, Best Buy Co. reported higher-than-expected results for the first quarter, led by sales of appliances, wearables and tablets.
The Richfield, Minn.-based retailer blew past analysts’ profit expectations and were in line on other measures, pushing its stock up 2% in premarket trading.
Executives said they remained confident about the rest of the year, reconfirming the guidance they had previously given to investors about full-year results.
“This outlook balances our better-than-expected Q1 earnings, the fact that it is early in the year and our best estimate of the impact associated with the recent increase in tariffs on goods imported from China,” Hubert Joly, the company’s chief executive, said in a statement.
Tariffs on about $200 billion worth of China imports are scheduled to rise to 25% from 10% on June 1.
Best Buy earned 98 cents per share for the three months ended May 4, 11 cents higher than analysts were expecting. Adjusted for one-time events, Best Buy earned $1.02 per share, 15 cents higher than expected.
Sales across domestic and international operations were flat, at $9.1 billion, while comparable sales among stores open at least a year rose 1.1%.
Online sales were up 14.5% and amounted to 15.4% of U.S. sales.
For the full year, Best Buy expects sales growth of 0.5% to 2.5%, revenue in the $42.9 billion to $43.9 billion range and earnings per share of $5.45 to $5.65.