Best Buy (BBY) stock falls despite surpassing expectations

Best Buy (BBY) exceeded Wall Street expectations in revenue, earnings, and same-store sales growth. Despite this, the stock dropped 4% as the retailer maintained its full-year outlook, disappointing investors. CEO Corie Barry expressed confidence in trending towards higher sales, but uncertainty with tariffs led to keeping previous guidance unchanged.

Projected same-store sales for Best Buy show a range from a 1% decline to a 1% increase, with revenue forecasted between $41.1 billion to $41.9 billion and adjusted earnings per share between $6.15 and $6.30. The company plans to focus on promotions during the holiday season to attract value-seeking consumers.

Best Buy’s same-store sales saw a 1.6% growth, the fastest since the third quarter of 2022, driven by strong performance in gaming, computing, mobile phones, wearables, and headphones. However, declines were noted in home theater, appliance, tablet, and drone categories.

Despite some declines, Best Buy anticipates continued momentum in the third quarter with similar same-store sales growth as the second. The company is working to mitigate the impact of tariffs by offering promotions and strategies to offset increased costs for customers.