Best Buy sales have increased, but they don’t expect the momentum to last

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Revenue reached $ 9.91 billion in the quarter ended August 1, up 4% from the previous year. Online sales jumped 242%. The increase was largely due to purchases of computers, laptops and home appliances, as families continued to adjust to work and learning from home.

However, the company did not provide forward-looking guidance and said it did not expect the pace of growth to continue in the third quarter.

“As we forecast for the second half of the year, we continue to weigh many factors, including potential future government stimulus, the current shift in personal consumption spending into areas like travel and restaurants, the possible depth and duration of the pandemic, the risk of higher unemployment over time, and the availability of inventory to meet customer demand, ”Best Buy CFO Matt Bilunas said in a statement.

Actions of Best buy (BBY) were down 7% to $ 109 in early trading Tuesday.

Best Buy CEO Corie Barry, on a call with reporters Tuesday, said the federal government’s stimulus controls had “provided a level of confidence” to consumers and helped support spending in the quarter.Going forward without them could lead to a “lack of confidence,” she said.

As retailers prepare for the all-important holiday season, Barry said Best Buy plans to launch their promotions earlier than usual. “We are preparing to start it in October,” she said on the call. “It will be longer with more promotional periods. “

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