Best Buy reported fiscal second-quarter earnings that exceeded Wall Street expectations and prompted the company to raise its financial guidance for the full year. The retailer achieved comparable sales growth of 4.1%, surpassing its prior outlook of 1%, and delivered adjusted operating income that came in above forecasts. Computing emerged as a particularly strong performer, contributing to growth across all major product categories.
In response to the strong first-half performance, Best Buy increased its full fiscal-year revenue guidance to a range of $42.3 billion to $42.8 billion, up from the previous range of $41.2 billion to $42.1 billion. The company also raised its comparable sales forecast to between 1.9% and 3%, compared with prior expectations of a decline of 1% to an increase of 1%. Adjusted earnings per share guidance was raised to between $6.70 and $6.90 from $6.30 to $6.60.
For the quarter ended Aug. 1, Best Buy posted net income of $315 million, or $1.48 per share, against $186 million, or 87 cents per share, in the year-ago period. Adjusted earnings reached $1.47 per share. Revenue increased 3.6% to $9.44 billion from $9.44 billion in the prior-year quarter. The company noted that its gross profit rate for the quarter included a $34 million benefit from tariff refunds.
Despite the positive financial results, Best Buy shares declined approximately 7% in morning trading. Incoming CEO Jason Bonfig, who will assume leadership on Nov. 1, attributed the strength to deliberate business positioning and a healthy demand environment. He indicated that customers remain resilient and focused on value, with particular interest in technology innovation. The company expressed confidence in consumer health and anticipated strength in television, appliances, and phones, while noting that the fourth-quarter launch of Grand Theft Auto 6 should provide additional momentum in the gaming category.
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