Best Buy Co Inc. will close its 257 remaining stand-alone mobile stores in the U.S. effective May 31.

The news came amid better-than-expected fourth-quarter earnings that saw same-store sales at the consumer electronics retailer rise 9%.

Best Buy BBY, -1.43% opened its first mobile store before the launch of the Apple Inc. AAPL, -0.04% iPhone.

“Back then the mobile phone business was in a period of rapid growth and margins were high,” said Chief Executive Hubert Joly on the earnings call, according to a FactSet transcript. “Fast forward to 2018 and the mobile phone business has matured, margins have compressed and the cost of operations in our stand-alone stores is higher than our big-box stores.”

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Best Buy has beefed up its mobile offerings and experience in its big-box stores and online. Mobile phones, along with gaming, appliances, smart homes, wearables and home theater were the largest drivers of same-store sales growth for the quarter. Contributors in the mobile category include the Samsung 005930, -0.16% Note, which wasn’t available the year prior due to a recall, and the iPhone X launched, which shifted $100 million from the third quarter to the fourth quarter, according to Chief Financial Officer Corie Barry.

The Best Buy Mobile store closures are expected to hurt revenue by about $225 million, with flat-to-slightly-positive impact on operating income.

Analysts focused on other areas of concern, despite the results.

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“We think the most important risk to our bullish thesis is Best Buy’s plans to accelerate capex and SG&A investments into efforts to grow service revenue in fiscal 2019 and beyond – but these initiatives could contribute to gross margin percentage dropping as much as 40 basis points this year,” wrote Raymond James in a note.

Best Buy plans to raise is 2019 capital expenditures to $850 million to $900 million, up from the $750 million to $850 million that was discussed during the investor day in September.

Still, Raymond James analysts are optimistic about the company’s coming fiscal year.

“Best Buy’s performance has exceeded guidance/expectations in 15 of the past 16 quarters and we believe a similar set up is in place for fiscal 2019,” analysts said.

Raymond James rates Best Buy shares strong buy with an $87 price target, up from $71.

Wedbush rates Best Buy shares underperform, though it raised its price target to $45 from $38. Analysts led by Michael Pachter admit they have been wrong about the company, but they maintain their rating.

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“For now, Best Buy is up against a very difficult comparison this year, particularly in Q4, and we think guidance for positive comps in fiscal 2019 is at risk,” Wedbush wrote, though analysts say they will revisit the company if it continues to perform in the near-term.

RBC Capital Markets analysts worry about the consumer electronics category, along with tough comparisons and headwinds related to investments.

“We remain concerned over deteriorating consumer electronics trends and a lack of top-line drivers, particularly given expectations for continued average selling price compression in 4K TVs,” analysts wrote.

Analysts say they’re concerned about sustained same-store sales improvement in this environment, nothing that “Best Buy’s valuation is in line with other ‘comp challenged’ retailers.”

RBC rates Best Buy shares sector perform with a $74 price target, up from $72.