Best Buy (BBY) Q1 2027 earnings
Best Buy On Thursday, the electronics retailer announced first-quarter financial results that beat expectations on the top and bottom lines as it struggles to recover from a decline in sales.
The company said revenue increased slightly, driven by comparable sales growth of 2%. It reaffirmed its full-year revenue forecast of $41.2 billion to $42.1 billion, on top of adjusted earnings per share of $6.30 to $6.60. It expects comparable sales to range from a 1% decline to a 1% increase.
The company said its biggest growth drivers in the quarter were gaming, PC, mobile phones and services, partially offset by declines in device sales.
Shares of Best Buy rose 10% in morning trading.
“Our comparable sales were up 2% from last year, which was above our outlook, driven by favorable comparisons across the majority of our core product categories and strong performance across our Best Buy Ads and Marketplace initiatives,” CEO Corie Barry said in a statement. he said. “We also supported operating income ratio growth and EPS growth.”
More retailers included Walmart And Aim They have turned to advertising and third-party marketplace businesses that offer increased sales at higher profit margins than traditional products.
Here’s how Best Buy performed compared to Wall Street expectations in the fiscal first quarter, according to a survey of LSEG analysts:
- Earnings per share: Adjusted $1.28, expected $1.23
- Revenues: 8.94 billion dollars, while the expectation was 8.83 billion dollars
Best Buy reported net income of $276 million, or $1.31 per share, for the period ended May 2, down from $202 million, or 95 cents per share, a year earlier. Revenue increased from $8.77 billion to $8.94 billion in the previous year. Best Buy reported adjusted earnings per share of $1.28 per share, excluding one-time expenses, including charges incurred to restructure its healthcare business.
The gain comes a month after the company appointed Jason Bonfig as its new CEO, replacing Barry in the fall. The leadership change was part of Best Buy’s efforts to increase sales and accelerate its business.
“With this momentum, I believe the time is right to transition Best Buy’s leadership and step down as CEO later this year,” Barry said in a statement Thursday.
Bonfig said Thursday that the company is focused on expanding its reach and elevating customers’ experience as it prepares to take over on Nov. 1.
In a call with reporters on Thursday, Bonfig said the company is turning to leveraging artificial intelligence with OpenAI and Gemini to improve customer experience.
Barry also said Best Buy sees customers being pressured by macroeconomic factors such as high gas prices and inflation, but that consumers remain “resilient.”
“Technology is more important than ever in people’s lives, and that means everyone is looking for ways to optimize their lives and looking for ways to optimize their technology,” Barry told reporters.
Best Buy is struggling with a decline in sales, taking additional hits from higher tariffs and declining consumer confidence. Last quarter, Barry said the company saw a divergence between high-income customers and lower-income customers and softness in sales of high-cost products.
The company isn’t worried that rising memory costs will affect its electronics purchases, Barry said on a call with analysts Thursday.
“We don’t see any indication that the customer is bringing forward purchases, and in fact very few people are actually worried about ‘memory,'” Barry said.
He added that the company is the record importer for 2 percent to 3 percent of its sales, so it expects the money it will get back in terms of overall sales to be small “while complying with phase one of the tariff refund process.”
