Best Buy hikes sales forecast as shoppers upgrade tech, splurge on devices
Best Buy upgraded its full-year outlook on Tuesday, citing stronger-than-anticipated sales driven by demand for laptops, gaming consoles, and smartphones, alongside growth in wearables and headphones. The consumer electronics retailer now expects revenue between $41.65 billion and $41.95 billion, up from its prior range, and adjusted earnings per share of $6.25 to $6.35, compared with previous guidance of $6.15 to $6.30.
For the fiscal third quarter, Best Buy posted adjusted earnings per share of $1.40, beating estimates of $1.31, while revenue reached $9.67 billion, ahead of the $9.59 billion forecast. Comparable sales rose 2.7% year-over-year—the highest growth in four years—fueled by computing, gaming, and mobile phone categories, though appliances and home theater sales softened.
CEO Corie Barry noted customers remain “resilient, but deal focused,” attracted to predictable sales events like back-to-school promotions and the retailer’s October sale event. While big-ticket purchases are still considered carefully, she said shoppers are willing to spend on high-price products when driven by need or innovation, such as the Nintendo Switch 2, new iPhones, and AI-enabled laptops.
Cautious Holiday Outlook Amid Selective Spending
Despite the upbeat revision, Best Buy struck a cautious note for the holiday quarter, projecting comparable sales between a 1% decline and a 1% increase, reflecting tougher year-over-year comparisons and potential deceleration in gaming and wearables. CFO Matt Bilunas acknowledged that higher tariffs have not yet meaningfully impacted prices or sales, with growth currently driven by unit volume rather than price increases.
Strategic Initiatives Gaining Traction
The company is expanding experiential retail through vendor demos, including Meta’s AI-enabled glasses showcases in over 50 stores, pilot showrooms with Ikea, and displays from brands like Breville and Sharkninja. Its recently launched third-party marketplace has grown to include 1,000 sellers and significantly expanded online assortment, already boosting sales in accessories and small appliances.
While initiatives show early promise, the appliance category remains challenged by a slow housing market, prompting Best Buy to enhance labor support, accelerate deliveries, and offer same-day availability to compete more effectively.
Shares rose about 5% following the report, though the stock remains down roughly 7% year-to-date.
