Best Buy delivered better than expected quarterly results, prompting the retailer to raise its full year outlook as consumers upgraded laptops, gaming consoles and smartphones. Despite a cautious economic backdrop and selective spending from shoppers, the electronics chain saw solid momentum across key tech categories and expects modest growth heading into the holiday season.
Forecast Lifted After Sales Beat
The company now expects full year revenue between $41.65 billion and $41.95 billion, up from a prior range of $41.1 billion to $41.9 billion. Adjusted earnings per share are projected at $6.25 to $6.35. Comparable sales are now forecast to rise between 0.5% and 1.2%, an improvement from earlier expectations that ranged from a 1% decline to a 1% increase.
For the quarter ending Nov. 1, Best Buy reported adjusted earnings of $1.40 per share versus $1.31 expected, and revenue of $9.67 billion compared with forecasts of $9.59 billion. Shares rose about 6% after the report, though the stock remains down roughly 12% year to date.
Tech Demand Drives Quarterly Performance
CEO Corie Barry said computing, gaming and mobile phones delivered “better than expected” sales, supported by customers upgrading devices and responding to promotional events such as back to school and the company’s October sale. Growth in wearables and headphones also contributed. Comparable sales climbed 2.7%, the retailer’s strongest performance in four years.
Shoppers remain cautious with large purchases, but Barry noted they are willing to pay for high end products when driven by necessity or new technology. In the U.S., comparable sales rose 2.4% as customers bought more computers and gaming systems but fewer appliances and home theater items.
Holiday Outlook and Customer Trends
Best Buy expects holiday quarter comparable sales to range between a 1% decline and a 1% increase. Executives said trends remain positive but warned of tougher year over year comparisons and softening momentum in certain categories such as gaming and wearables. Nintendo Switch 2 sales, for example, have slowed since the early summer launch.
Shoppers continue to seek value, often opting for mid range or lower tier TVs over premium models. Still, Best Buy’s wide assortment and specialty retail position are helping attract younger and lower income customers.
Tariffs, Innovation and In Store Experiences
Higher tariffs have not yet meaningfully affected pricing or sales, with the company citing the electronics category’s heavy promotional nature. Meanwhile, Best Buy continues expanding in store demonstrations, including AI enabled Meta glasses and premium appliances from brands like Breville and Sharkninja. Early customer engagement appears strong as the company prepares for Black Friday and Cyber Monday.
Marketplace Expansion and Category Challenges
Best Buy’s third party marketplace, launched in August, now includes over 1,000 sellers and has expanded online assortment more than eleven fold. Early results show higher sales in accessories and small appliances, lower return rates and strong in store return volume.
However, the appliance category remains the company’s toughest area. CFO Matt Bilunas said slower housing turnover has reduced purchases of premium appliance sets, with customers now focused primarily on replacing broken units. Best Buy plans to boost labor, accelerate delivery options and introduce same day availability to regain momentum.