It was a bright Christmas season for Best Buy (NYSE:BBY) after all. The consumer electronics retailer on Thursday announced earnings results that allowed it to outgrow many peers during the industry's most competitive period.
Sales growth landed at 3.4% in its core U.S. stores to mark an acceleration over the prior quarter's 2% boost. The increase also allowed the company to beat its own outlook for the period.
Best Buy managed to outpace major peers like Walmart as product categories such as headphones and appliances more than offset declines in the video gaming niche. "We offered compelling holiday deals that resonated with customers and provided a seamless shopping experience," CEO Corie Barry said in a press release.
Best Buy's outlook for the new year was conservative and included an expected impact from the coronavirus outbreak. That pressure on sales growth should only last through the first half of fiscal 2021, although that prediction could change significantly as the situation develops.
Still, Best Buy is predicting that overall sales will rise by about 1% at the midpoint of guidance as adjusted profitability holds steady at roughly 5% of sales in fiscal 2021.