Key Highlights
- First-quarter adjusted earnings per share reached $1.28, exceeding the $1.23 Wall Street consensus
- Quarterly revenue totaled $8.94 billion, surpassing analyst projections of $8.83 billion
- Comparable store sales increased 2%, driven by strong performance in gaming, computing, and mobile segments
- BBY shares climbed more than 10% during premarket hours following the earnings announcement
- Company maintains full-year outlook: revenue between $41.2B and $42.1B, with adjusted EPS of $6.30 to $6.60
Best Buy (BBY) shares rallied over 10% in Thursday’s premarket session after the consumer electronics giant delivered first-quarter financial results that exceeded analyst expectations on both the top and bottom lines.
The retailer announced net earnings of $276 million, translating to $1.31 per share, marking a significant improvement from the prior year’s $202 million, or 95 cents per share. On an adjusted basis, earnings per share hit $1.28, clearing the Street’s $1.23 estimate. Total revenue climbed to $8.94 billion from last year’s $8.77 billion, comfortably beating the consensus forecast of $8.83 billion.
Comparable store sales posted a 2% year-over-year increase—outperforming the company’s initial projections—with U.S. locations reporting 1.8% growth and international stores advancing 4.7%. Market analysts had only anticipated 0.9% growth in overall comparable sales.
The domestic market saw its strongest momentum in gaming hardware, computing products, mobile devices, and various services throughout the quarter. Appliance category performance lagged, partially offsetting gains in other areas.
Emerging product categories delivered particularly impressive results. Revenue from collectibles, 3D printing equipment, and AI-powered eyewear doubled compared to the same period last year. Management noted that consumers demonstrated appetite for premium, cutting-edge technology products while remaining value-conscious overall.
Executive Succession in Motion
These encouraging results come amid a planned Best Buy leadership change. Current CEO Corie Barry, who assumed the top role in 2019, revealed plans to step down this autumn. Jason Bonfig, a longtime Best Buy executive, is scheduled to assume the CEO position on November 1.
“With this momentum, I believe it is the right time to transition the leadership of Best Buy,” Barry stated in Thursday’s earnings announcement.
Bonfig outlined four strategic pillars for his tenure: establishing Best Buy as a comprehensive retail, media, advertising, and technology enterprise; expanding market presence; enhancing customer experiences; and cultivating what he characterized as a “human-powered, customer-focused company.”
Advertising and Marketplace Drive Margin Expansion
Following the playbook of retailers like Walmart and Target, Best Buy has been aggressively expanding its advertising platform and third-party marketplace operations. These revenue streams deliver superior profit margins compared to conventional product sales and represent an increasingly important component of the company’s growth trajectory.
CEO Barry highlighted Best Buy Ads and the Marketplace platform as standout performers during the latest quarter.
The retailer has been working through an extended period of sales challenges, exacerbated by tariff uncertainties and cautious consumer sentiment. During the previous quarter, Barry noted a divergence between affluent and budget-conscious shoppers, with particular weakness in high-value purchases.
This quarter’s performance indicates some of those headwinds may be subsiding—though it remains unclear whether this represents a lasting trend.
Looking ahead to Q2, Best Buy projects approximately 1% comparable sales growth, noting that year-over-year comparisons will be challenging due to a significant gaming console release in June 2025. Through May, comparable sales are tracking up in the high single digits, according to CFO Matt Bilunas.
Management reiterated its full-year financial targets: adjusted earnings per share ranging from $6.30 to $6.60, total revenue between $41.2 billion and $42.1 billion, and comparable sales expected to land between negative 1% and positive 1%.
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