Best Buy delivered stronger-than-expected quarterly results on Thursday and lifted its full-year outlook, signaling a continued recovery as the electronics retailer navigates a leadership transition ahead of incoming CEO Jason Bonfig's tenure.
Consumer spending remains resilient, though shoppers continue to prioritize value and promotional deals, the company noted in its latest earnings report.
For the fiscal second quarter ended August 1, Best Buy reported same-store sales growth of 4.1% year-over-year, well ahead of its prior guidance of 1%. Adjusted operating margin also surpassed expectations, with growth recorded across all major product categories, led by a sharp uptick in computer sales.
New CEO Jason Bonfig credited the company's "strong first-half operational performance" for the decision to raise its full-year financial guidance. The company now projects annual revenue in the range of $42.3 billion to $42.8 billion, up from its previous forecast of $41.2 billion to $42.1 billion. Same-store sales are expected to grow between 1.9% and 3%, compared with the earlier guidance of a 1% decline to 1% growth. Adjusted earnings per share are now anticipated at $6.70 to $6.90, versus the prior range of $6.30 to $6.60.
The quarterly gross margin included a $34 million benefit from tariff refunds, Best Buy said.
Here's how the fiscal second quarter results compared with Wall Street expectations, based on a survey of analysts by LSEG:
Adjusted earnings per share: $1.47 versus $1.38 expected
Revenue: $9.78 billion versus $9.59 billion expected
Net income for the quarter totaled $315 million, or $1.48 per share, compared with $186 million, or $0.87 per share, in the year-ago period. Excluding one-time items, adjusted earnings per share came in at $1.47.
This marks the final quarterly report under outgoing CEO Corie Barry, with Bonfig set to take the helm on November 1 as part of Best Buy's broader strategy to accelerate business momentum.
"Our second-quarter results reflect both the deliberate actions we've taken to drive growth and a favorable demand environment across the consumer electronics industry," Bonfig said in a statement.
The retailer reiterated that consumers remain willing to spend but are increasingly focused on value and discounts when making purchases. Best Buy continues to contend with industry-wide pressures from tariff policies and surging memory chip prices, the company said Thursday, noting that shoppers are approaching purchases with greater specificity around needs and budget constraints.
In recent quarters, Best Buy had experienced declining store traffic, weaker consumer confidence, and sluggish sales. Bonfig has previously expressed confidence in his ability to revitalize the company, refresh its product lineup, and enhance the overall shopping experience.
One key initiative involves opening smaller-format stores to expand the company's footprint into areas that cannot support full-size locations. Bonfig also plans to leverage artificial intelligence to improve both the in-store customer experience and internal business operations.
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