Best Buy (NYSE:BBY) shares surged nearly 10% in premarket trading after the electronics retailer reported first-quarter results that topped analyst expectations, supported by improved comparable sales and strength across several key product categories.
Adjusted earnings per share came in at $1.28, exceeding the consensus estimate of $1.22 by $0.06.
Revenue for the quarter reached $8.94 billion, ahead of analyst forecasts of $8.82 billion and up 1.9% from $8.77 billion in the same period last year.
Comparable sales increased 2.0% during the quarter, a notable improvement from the 0.7% decline recorded a year earlier. The company cited strong demand in gaming, computing, mobile phones, and services as key drivers of growth.
“Our comparable sales grew 2% versus last year, higher than our outlook, with positive comps across the majority of our major product categories and strong performance in our Best Buy Ads and Marketplace initiatives,” said Corie Barry, Best Buy CEO.
Shares rose 9.9% following the earnings release as investors reacted positively to the stronger-than-expected sales trends.
Best Buy maintained its fiscal 2027 outlook, projecting adjusted diluted EPS between $6.30 and $6.60. The midpoint of $6.45 was slightly below the analyst consensus estimate of $6.48.
The company also reaffirmed its revenue forecast of $41.2 billion to $42.1 billion for the year. The midpoint of $41.65 billion came in slightly below Wall Street expectations of $41.75 billion.
Within the company’s operating segments, domestic revenue rose 1.5% to $8.25 billion, while international revenue increased 7.3% to $687 million.
The domestic gross profit rate improved to 23.7%, compared with 23.5% in the prior-year quarter, helped by continued growth in the Marketplace and Best Buy Ads businesses.
Chief Financial Officer Matt Bilunas said comparable sales trends strengthened early in May, with month-to-date growth running in the high single digits.
For the second quarter, the company expects comparable sales growth of around 1.0% and projects an adjusted operating income margin of approximately 3.9%.