Electronics giant Best Buy delivered stronger-than-expected first-quarter results on Thursday and issued an optimistic sales forecast for the upcoming quarter, driven by consistent consumer appetite for laptops and smartphones along with expansion in advertising and marketplace operations.
The retailer announced that CEO Corie Barry will depart at the end of October, with company veteran Jason Bonfig taking over leadership. Bonfig is anticipated to prioritize growth in the company’s higher-profit advertising and marketplace segments.
Best Buy’s stock price, which has declined roughly 10% over the previous year, jumped more than 6% in pre-market trading following the earnings announcement.
The electronics chain has intensified its focus on services like Geek Squad technical support and premium memberships as customers continue upgrading and replacing essential technology devices while remaining cautious about major purchases.
“We’ve been scaling new profit streams like Best Buy Ads and Marketplace that we expect to provide considerable benefit over time,” Barry stated.
Sales on a comparable basis increased 2% during the quarter that concluded May 3, recovering from a 0.7% decrease in the same period last year and surpassing analyst projections of approximately 1%, based on LSEG data.
CFO Matt Bilunas noted that May sales growth reached a high-single-digit rate but anticipates a slowdown to roughly 1% for the second quarter following last year’s robust Nintendo Switch 2 launch. This projection still exceeds analyst expectations of a 0.4% decline.
The company reaffirmed its fiscal 2027 guidance for comparable sales ranging from a 1% decrease to a 1% increase, with adjusted earnings per share projected between $6.30 and $6.60.
Future CEO Bonfig detailed strategies to concentrate on the company’s retail, media and technology platform, broaden marketplace reach, and improve customer service experiences.
These initiatives come as consumer spending patterns remain unpredictable and the company depends heavily on electronics replacement cycles.
Best Buy has also increased imports of computers and other electronic devices to counter rising memory costs, as global shortages linked to artificial intelligence demand push up component pricing.
The retailer posted first-quarter earnings of $1.28 per share, surpassing analyst estimates of $1.23 per share.
