Best Buy (NYSE:BBY) is growing again. The consumer electronics retailer said on Tuesday evening that the business has returned to revenue gains as of mid-July after sales slumped during COVID-19 closures in March, April, and May.
In a sales update, Best Buy revealed that revenue is up 2.5% so far in the fiscal second quarter that started on May 3. The chain reported a 5% sales decline on that basis in the prior quarter, mainly thanks to store closures that began in late March. Reopened locations contributed to the rebound, but Best Buy has also benefited from soaring online demand as consumers adjust their shopping habits. That channel is up 255% so far in Q2, management said.
Best Buy still isn't providing investors financial guidance for the rest of the year due to uncertainty around economic growth trends and the timing of further COVID-19 outbreaks. Yet the company appears likely to benefit from a sustained increase in e-commerce demand.
Online sales are running higher by nearly 200% since Best Buy reopened all of its locations in mid-June, according to executives. "Strong consumer demand, combined with shopping experiences that emphasize safety and convenience, has helped produce our sales results to date," CEO Corie Barry said in a press release.