Best Buy reported quarterly results on Thursday that topped Wall Street expectations for both revenue and profit, but the retailer left its full-year forecast unchanged, citing tariff-related uncertainty that could dampen consumer spending later this year.
For the quarter ended August 2, Best Buy posted revenue of $9.44 billion, ahead of analyst estimates of $9.24 billion, according to LSEG. Adjusted earnings came in at $1.28 a share, compared with expectations of $1.21. Net income fell to $186 million, or 87 cents per share, from $291 million, or $1.34 a year earlier.
Comparable sales rose 1.6% in the fiscal second quarter, marking the company's strongest growth in three years. In the U.S., comparable sales increased 1.1%, driven by demand for mobile phones, video gaming equipment, and computing devices, while sales of appliances, tablets, and home theater products lagged.
Gaming sales provided a major lift thanks to the June release of the Nintendo Switch 2. CEO Corie Barry said Best Buy capitalized on the highly anticipated launch by offering pre-orders and opening stores at midnight when the gaming console dropped on June 5.
Online sales in the U.S. rose 5.1% year-over-year and accounted for roughly one-third of total domestic revenue. International same-store sales jumped 7.6%, rebounding from a 1.8% decline a year ago.
Despite the solid performance, Barry cautioned that tariff issues could weigh on sales in the months ahead. "Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last quarter," she said on the earnings call.
Best Buy reaffirmed its fiscal 2026 forecast for revenue of $41.1 billion to $41.9 billion and adjusted earnings per share of $6.15 to $6.30. Comparable sales for the year are expected to range between a 1% decline and a 1% increase. CFO Matt Bilunas said a slowdown could emerge in October "as people are waiting for those holiday deals to come."
Barry emphasized that customers remain careful but willing to spend when products are compelling. "In the current environment, customers continue to be thoughtful about big ticket purchases and are willing to spend on high price point products when they need to, or when there is technology innovation," she said.
Shares of Best Buy rose about 1% in premarket trading following the results.
