Best Buy has reported a big bump in quarterly earrings as consumers looking to spend their stimulus checks on technology have driven up the retailer's earnings by 70%, the company's chief executive said.
The tech retailer saw record growth in revenue from May to July as it rose to almost 21% bringing in a record $11.8 billion, compared to the same period last year, the Star Tribune reported.
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This record growth comes at a time when online sales are declining from their record-setting numbers last year, primarily due to the pandemic and stay-at-home shoppers. Even still, the company has continued to profit and an economy that is continuing to bounce back.
"We have delivered a remarkable first half against a volatile backdrop," Corie Barry, Best Buy's chief executive, said in a call with analysts Tuesday.
Consumer behaviors have been constantly changing throughout the past year, and Best Buy executives say the company is stronger now than it expected to be.
"Over the longer term, we are fundamentally in a stronger position than we expected to be in just two years ago," Barry continued.
The company earned above and beyond what Wall Street expected it to as it brought in $734 million in the second quarter, resulting in $2.90 a share. Last year in the second quarter, the company reported $432 million in earnings.
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Barry shared that government stimulus checks, improving wages, and high savings levels from the last quarter drove the demand in products for the average consumer.
The company now expects comparable sales to increase from 9% to 11% for the year. In addition, the company's CFO, Matt Bilunas, shared that the tremendous second quarter raised its financial outlook for the fiscal year.