Best Buy posted quarterly results that topped Wall Street expectations, but the company handed in weak same-store sales guidance.
The consumer-electronics company posted earnings of 33 cents a share, excluding one-time items, on sales of $9.04 billion. Analysts had expected the company to report earnings of 20 cents a share on $9.21 billion in revenue, according to a consensus estimate from Thomson Reuters.
In addition, the company reported same-store sales that fell 1.9 percent in the first quarter, versus a loss of 0.8 percent. The firm also expects sales to be between negative and in the low single digits in the second and third quarters.
Shares were lower initially lower following the report, but turned higher before the opening bell. (Click here to get the latest quotes.)
"As we look forward to the second and third quarters, we are expecting to see ongoing industry-wide sales declines in many of the consumer electronics categories in which we compete," said Sharon McCollam, CFO of Best Buy, in a press release. "We are also expecting ongoing softness in the mobile phone category as consumers eagerly await highly-anticipated new product launches."
Earlier this month, Best Buy said it would revamp its home theater department with single-brand "store-within-a-store" areas for Samsung and Sony as the retailer seeks to boost sales of TVs and speaker systems.
The electronics and appliance seller has been refreshing its store format in a variety of ways since it brought in CEO Hubert Joly almost two years ago to lead a turnaround. The company has tested smaller stores and and dedicated store space for top brands like Apple, Samsung and Microsoft.
—AP contributed to this report.