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Best Buy (NYSE:BBY) shares gained over 8% in pre-open trading Tuesday following better-than-expected third-quarter results and raised guidance.
The retailer posted non-GAAP EPS of $1.38, down from $2.08 last year, but better than the consensus of $1.03. Meanwhile, revenue fell 11.1% from last year to $10.59 billion but again beat the consensus of $10.32B. Comparable store sales fell 10.4% in the quarter.
Goldman Sachs analysts were expecting a 12.4% decline in sales and a 12.9% decline in comparable sales.
Domestic revenue of $9.80B decreased by 10.8% versus last year, primarily driven by a comparable sales decline of 10.5%.
At the end of Q3 FY23, merchandise inventories of $7.3B declined 14.7% compared to last year.
Looking to the full year, CFO Matt Bilunas, said the outlook will flow through better-than-expected Q3 results while keeping Q4 expectations unchanged. They now expect comparable sales to decline approximately 10% and non-GAAP operating income rate to be slightly higher than 4.0%. Previously, the company expected comparable sales to decline by around 11%.
The company resumed share repurchases in November after pausing during Q2 and now expects to spend approximately $1B in share repurchases this year.
