Best Buy beats estimates keeping full-year outlook

Best Buy beat quarterly estimates but maintained its full-year forecast amid tariff uncertainty.

Best Buy beats estimates as tariff uncertainty keeps full-year outlook intact

Best Buy reported fiscal second quarter results that beat Wall Street expectations. For the quarter ended August 2, revenue rose to $9.44 billion, ahead of the $9.24 billion consensus, and adjusted earnings per share reached $1.28, above the $1.21 expected. Net income fell to $186 million from $291 million a year earlier, while GAAP earnings per share came in at 87 cents. Comparable sales rose 1.6 percent, with U.S. comps up 1.1 percent and online sales up 5.1 percent, accounting for about a third of U.S. revenue.

Best Buy kept its full-year outlook intact, guiding revenue of $41.1 billion to $41.9 billion and adjusted earnings per share of $6.15 to $6.30. The range was unchanged from the prior quarter after the company had cut its previous guidance in May. Management cited tariff uncertainty as the reason to stay cautious and said the back half of the year will depend on policy developments and consumer spending. The retailer has also rolled out a third party marketplace to broaden its assortment and expects some items to cost more due to tariffs, with price increases described as a last resort by the CEO.

The quarter shows resilience in a difficult market for appliances and big-ticket electronics. Online growth and the new marketplace point to a broader strategy to diversify revenue. Tariff risk remains a key hurdle and could pressure margins if costs rise or demand weakens. The company will need to sustain its online momentum and manage costs to meet the guidance.

Highlights

Markets will watch tariff policy closely as the year unfolds