Best Buy reported today comparable store sales were up 1.6 percent with online sales up 22 percent, sending the stock soaring by 16 percent.
The increase is notable as analysts had expected a decline in sales. Also, it comes at a time when many other brick and mortar stores are struggling to lure shoppers into stores.
Mobile products and gaming were responsible for much of the sales increase, said Best Buy CEO Hubert Joly. The delay in tax refunds this year also helped sales towards the end of the company’s fiscal first quarter ended April 29.
About a third of Best Buy’s online sales are picked up at one of its physical stores, as it sells large screen TVs, and large appliances. But also some of its smaller items are picked up at stores as well, reports MarketWatch, citing Fitch Ratings.
“Many customers don’t trust an expensive item to be shipped through home-delivery channels and left on the front porch or outside an apartment door,” it said.
The in-store pick up leads to the purchase of accessory items such as cases and cords. And in-store pick up is becoming popular with consumers, said JDA Software.
Business Insider quoted more than one analyst stating that Best Buy has figured out where the physical store makes sense in an increasingly online shopping experience. And it’s learning how to compete with Amazon.
However Best Buy’s income for the recent quarter fell to $188 million from $229 million. Total revenue inched up 1 percent to $8.53 billion.
Read more at BestBuy.com.