Best Buy Co., Inc.
The company reported first-quarter adjusted earnings per share of $1.28, beating the analyst consensus estimate of $1.23. Quarterly sales of $8.94 billion surpassed the Street view of $8.83 billion.
Adjusted operating income rate was 4.1%, expanding 30 basis points year over year. It is primarily driven by SG&A leverage from higher revenue.
Segment Details
Enterprise revenue of $8.9 billion, up 1.9% year-over-year and ahead of expectations, with comparable sales rising 2% Y/Y.
Domestic revenue reached $8.2 billion, with comparable sales up 1.8% Y/Y. This is led by strength in gaming, computing, mobile phones, and services.
Online sales accounted for 32% of domestic revenue, with $2.6 billion in e-commerce revenue, up 1.4% year over year, reflecting continued omnichannel strength.
Marketplace and advertising initiatives (Best Buy Ads and marketplace) exceeded expectations and supported gross profit expansion, with domestic gross margin improving 20 basis points Y/Y to 23.7%.
International revenue rose to $687 million, up 7% Y/Y, driven by 4.7% Y/Y comparable sales growth and favorable currency effects.
Dividend & Share Repurchase
In the company, the company returned a total of $202 million to shareholders through dividends.
Best Buy still expects to spend approximately $300 million on share repurchases during FY27.
Today, the company's board of directors authorized the payment of a regular quarterly cash dividend of 96 cents per common share.
The quarterly dividend is payable on July 9, 2026, to shareholders of record as of the close of business on June 18, 2026.
Outlook
The company also reaffirmed its FY2027 outlook, maintaining adjusted EPS guidance of $6.30-$6.60 compared with $6.48 consensus, and sales guidance of $41.2-$42.1 billion versus $41.78 billion expected.
Operating income margin guidance for FY27 remains 4.3%-4.4%, with further gross margin improvement expected from advertising and marketplace initiatives.
CFO Matt Bilunas added, "Comparable sales have started strong in May, with month-to-date growth up in high single digits. Our comparable sales outlook for the full quarter is approximately 1% growth as we start to lap last year's very successful gaming launch in June. We expect our second-quarter adjusted operating income rate to be approximately 3.9%, which is flat to last year."
BBY Stock Price Activity: Best Buy Co. shares were up 15.96% at $74.81 at publication on Thursday.
