Best Buy Co. got a boost from Mario and Luigi in the first quarter, as demand for Nintendo Co.’s new Switch game console helped the retailer post a surprise sales gain.
Comparable-store sales -- a closely watched benchmark -- rose 1.6 percent, the company said on Thursday. Analysts had predicted a decline. Best Buy’s earnings also topped analysts’ projections, sending the shares on their biggest rally in six months.
The Switch, which debuted March 3, has emerged as a bright spot in a lackluster retail industry. Last week, Target Corp. said its electronics sales “leapt forward” thanks to the Switch, which it promoted in stores and online. In April, the electronics category overall posted its first monthly gain in almost two years, according to government data cited by RBC Capital Markets.
“Our revenue was higher due to strong performance in gaming,” Best Buy Chief Executive Officer Hubert Joly said in a statement Thursday.
Shares of Best Buy surged as much as 15 percent to $57.95 in New York trading, the biggest intraday increase since November. They had gained 18 percent this year through Wednesday’s close.
Analysts had projected that same-store sales would drop 1.5 percent in the first quarter, which ended on April 29. Excluding some items, earnings jumped 40 percent to 60 cents a share. Wall Street had estimated 40 cents.
