The electronics retailer delivered a stronger quarter and raised its outlook.
Best Buy (BBY) posted quarterly results that surpassed expectations and set a positive tone heading into the holiday season. The company reported higher sales, improving demand trends, and increased confidence in its full-year forecast.
Key Points
- Same-store sales rose 2.7%, marking the strongest growth in nearly three years.
- Revenue and earnings beat expectations as computing, gaming, and mobile drove demand.
- Management raised its full-year revenue and earnings guidance.
Strong Quarter Shows Consumers Are Returning
Best Buy reported adjusted earnings of $1.40 per share on revenue of $9.67 billion, both coming in ahead of analyst estimates. Same-store sales increased 2.7% from last year, reversing a period of declines.
The improvement was fueled by shoppers returning to upgrade devices, especially in computing. Desktop sales alone grew nearly 30% year over year, boosted by the shift to Windows 11 as support ended for Windows 10. Demand also strengthened across mobile phones and gaming, including interest tied to new handheld systems and the ongoing Nintendo Switch 2 cycle.
Online sales rose 3.5% and accounted for nearly one-third of domestic revenue, supported by faster delivery, higher app usage, and improved in-store pickup options.
Why Did Best Buy Raise Its Outlook?
Management increased its full-year revenue forecast to a range of $41.65–$41.95 billion and now expects same-store sales to turn positive for the first time in three years. Adjusted earnings are projected between $6.25 and $6.35 per share.
Leaders cited confidence in key categories such as computing, gaming, and mobile continuing through the holiday season. The company also expects better performance in its TV segment due to improved pricing, marketing, and delivery. Operating income benefited from cost controls, including AI-driven customer support and more efficient fulfillment.
Is This a Turning Point for the Business?
After two years of declining demand, the latest results signal meaningful progress. Same-store sales, which had averaged a 1.5% annual decline, showed a clear turnaround. International performance was even stronger, with a 6.3% increase.
However, some gains are tied to one-time catalysts such as product upgrade cycles and new device launches. Larger-ticket categories, including appliances and home theater, remain softer, and hardware margins are still under pressure.
What It Means for Investors
For retail investors looking to analyze stocks or track investment news, this quarter demonstrated that the company is stabilizing after a difficult period. The business is benefiting from technology replacement needs rather than heavy discounting, which supports healthier profitability.
While growth is modest, raising expectations suggests management sees durable demand instead of a temporary bounce. Investors evaluating companies that are good to invest in may view the stock as more attractive than earlier in the year, especially with full-year guidance moving higher for both revenue and earnings.
Still, the longer-term outlook depends on whether the retailer can sustain momentum once current upgrade cycles fade. Success in expanding higher-margin areas like retail media and Marketplace will be key for those considering best company investments over time.
Conclusion
Best Buy delivered a clean beat-and-raise quarter, highlighted by improving sales trends and stronger customer demand heading into the holidays. While near-term conditions look constructive, the path forward will depend on maintaining growth beyond current product catalysts.
FAQs
How much did Best Buy’s same-store sales increase in the latest quarter?
Same-store sales rose 2.7% year over year, the strongest performance in nearly three years.
What drove the sales improvement this quarter?
Growth came primarily from computing, gaming, and mobile phones, along with higher online traffic and improved in-store experience.
Did Best Buy raise its full-year guidance?
Yes. Management now expects revenue between $41.65 billion and $41.95 billion and adjusted earnings of $6.25 to $6.35 per share.
How did online sales perform?
Online revenue grew 3.5% and represented about 31.8% of domestic sales.
What is the outlook for the holiday season?
The company anticipates continued strength in computing, gaming, and mobile, with fourth-quarter same-store sales expected between a 1% decline and a 1% increase.