By Dhirendra Tripathi
Investing -- Best Buy (NYSE:BBY) shares were up 3% premarket Thursday buoyed by the company raising its annual comparable sales growth outlook as higher consumer spending stoked its first quarter numbers.
The company revised its enterprise comparable sales growth to 3% to 6%, as against prior outlook of (-2%) to 1%.
Best Buy CEO Corie Barry said customer demand for technology products and services during the quarter was “extraordinarily high”. He attributed this to many more people at home looking to improve their lives by focusing on “working, learning, cooking, entertaining, redecorating and remodeling”.
For the quarter ended May 2, Best Buy’s enterprise comparable sales increased 37.2%, reversing their 5.2% fall in the first quarter of last financial year.
Total enterprise revenues rose 36% to $11.63 billion.
The company’s plan for a bigger share buyback was also adding to the positive sentiment for the stock. It will now repurchase shares to the tune of approximately $2.5 billion, which compares to prior outlook of at least $2 billion.