A person walks in front of a Best Buy store on May 29, 2025 in Chicago, Illinois.
Scott Olson | Getty Images
Best buy reported first-quarter financial results on Thursday that beat expectations for revenue and bottom line, as the electronics retailer tries to emerge from a sales decline.
The company said its revenue rose slightly, driven by comparable sales growth of 2%. It reaffirmed its full-year revenue guidance of between $41.2 billion and $42.1 billion, in addition to adjusted earnings per share of $6.30 to $6.60. He expects comparable sales to range from a 1% decrease to a 1% increase.
The company said its main growth drivers in the quarter were gaming, computing, mobile phones and services, which were partially offset by a decline in sales of home appliances.
Best Buy shares rose 7% in premarket trading.
“Our comparable sales increased 2% year-over-year, which was above our guidance, with positive sales in the majority of our core product categories and strong performance in our Best Buy Ads and Marketplace initiatives,” CEO Corie Barry said in a statement. “We also drove operating profit rate expansion and EPS growth.”
More retailers including Walmart And Target have shifted to advertising and third-party marketplace businesses, which offer sales growth with higher profit margins than their traditional products.
Here’s how Best Buy performed in its fiscal first quarter compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $1.28 adjusted vs. $1.23 expected
- Income: $8.94 billion versus $8.83 billion expected
For the period ended May 2, Best Buy reported net income of $276 million, or $1.31 per share, up from $202 million, or 95 cents per share, a year ago. Revenue rose slightly to $8.94 billion from $8.77 billion the year before. Excluding one-time expenses, including costs incurred for restructuring its healthcare business, Best Buy reported adjusted earnings per share of $1.28 per share.
The earnings come just over a month after the company named Jason Bonfig as its new CEO, succeeding Barry in the fall. The leadership change was part of Best Buy’s efforts to increase sales and accelerate its business.
“With this momentum, I believe now is the right time to transition leadership of Best Buy and step down as CEO later this year,” Barry said in a statement Thursday.
Bonfig said in Thursday’s release that he is focused on expanding the company’s reach and improving the customer experience as he prepares to take the helm on Nov. 1.
Best Buy is struggling with declining sales, suffering additional impacts from rising prices and declining consumer confidence. Last quarter, Barry said the company was seeing a divergence between high-income and low-income shoppers, with sales of more expensive items slowing.