Best Buy beats earnings and raises profit guidance, but lowers revenue forecast

From CNBC: 2024-08-29 07:51:12

Best Buy raised its fiscal-year profit guidance after beating earnings and revenue estimates for the most recent quarter. It now expects adjusted earnings per share to be between $6.10 to $6.35. However, the company lowered its full-year revenue and comparable sales guidance. Shares of Best Buy rose 6% in premarket trading.

For the period ending August 3, Best Buy reported earnings per share of $1.34, surpassing the expected $1.16, and revenue of $9.29 billion, slightly higher than the $9.24 billion estimate. Net income for the quarter was $291 million, up from $274 million the previous year. Net sales dropped to $9.29 billion from $9.58 billion.

Comparable sales for Best Buy declined by 2.3% during the quarter, but this is an improvement from the 6.2% decline in the same period last year. The company has been undergoing a turnaround amid lower consumer demand post-Covid and high inflation. Best Buy is banking on new tech releases to drive sales growth.

Best Buy is focusing on marketing and operational initiatives to attract consumers as the replacement cycle for pandemic-era tech products begins. The retailer is adding trained sales teams in key store sections and launching a marketing campaign with YouTube videos. They are also counting on new tech gadgets like iPads and AI laptops to boost sales.



Read more at CNBC:: Best Buy (BBY) earnings Q2 2025