Sales beat expectations ahead of key holiday season
Best Buy reported third quarter results that topped Wall Street estimates, giving the retailer momentum as it approaches the holiday period. Same-store sales rose 2.7 percent, ahead of the 1.6 percent analysts expected. Adjusted earnings reached 1.40 dollars per share on revenue of 9.67 billion dollars, both exceeding forecasts.
The company raised its full-year guidance and now expects same-store sales to grow between 0.5 percent and 1.2 percent, compared with the previous range that stretched from a one percent decline to a one percent increase. “The consumer is not a monolith, but generally what we’re seeing remains a generally resilient consumer,” CEO Corie Barry said.
Broad sales growth across key categories
US same-store sales increased 2.4 percent, online sales rose 3.5 percent, and international same-store sales jumped 6.3 percent. Each of these categories was an improvement from last year, when results declined across the business.
Strong performance in computing, gaming and mobile phones supported the gains. The company said it expects “huge demand” for the upcoming Nintendo Switch 2 to continue driving momentum.
Full-year revenue and profit forecasts move higher
Best Buy now projects full-year revenue between 41.65 billion and 41.95 billion dollars, up from the earlier range of 41.1 billion to 41.9 billion dollars. Adjusted earnings per share are expected to fall between 6.25 dollars and 6.35 dollars, an increase from the previous guidance.
“We are raising our full year forecast to reflect the strong Q3 results and our current outlook for Q4,” CFO Matt Bilunas said. For the fourth quarter, Best Buy expects same-store sales to range from a one percent decline to a one percent increase, with an adjusted operating income rate between 4.8 percent and 4.9 percent.
Consumer trends show uneven spending patterns
The results come at a time when retailers focused on value have attracted more customers, as uneven economic conditions shape shopping behavior. Best Buy noted that higher-income households are increasingly driving overall consumption. According to internal analysis, the top 40 percent of incomes account for roughly two-thirds of spending, up about ten percentage points compared with five years ago.
