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Best Buy confounds expectations with huge rise in sales

But it's not all good news for the Richfield retail giant.

Best Buy's winning streak continues, with the retailer registering a giant 7.1 percent sales increase in the First Quarter.

The rise in comparable sales confounded not just Wall Street's expectations, but also its own, with CEO Hubert Joly admitting it was "better-than-expected."

Sales of cellphones, appliances, computers, tablets and smart home products drove the 7.1 percent same-store sales growth, the company said, despite analysts expecting just a 2.9 percent rise.

Its $8.41 billion revenue was a 6.3 percent increase on last year, with this partially offset by the loss of income after it closed 17 large Best Buy stores and 193 Mobile stores.

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It means the company continues the hot streak it's been on as of late, continuing to grow where other bricks and mortar retailers have struggled in the face of online competition.

But there is a warning sign for Best Buy, with the company saying its online sales rose only by 12 percent in the 1st Quarter, compared to 22.5 percent in the 1st Quarter of 2017.

With shoppers continuing to turn online, CNBC remarks that the slowing online growth overshadows an otherwise excellent set of results.

Best Buy confirmed at the weekend that it was closing down its Gamers Club Unlocked program to new subscribers, which gave video game fans significant discounts in exchange for a $30 fee every 2 years.

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