Best Buy Lifts Comparable Sales Outlook to 3.0%
The electronics retailer posted 4.1% enterprise comparable sales growth in the 13 weeks ended Aug. 1 and raised full-year adjusted diluted EPS guidance to $6.70 to $6.90.
Best Buy Co., Inc. (BBY) accelerated comparable sales growth to 4.1% in the 13-week second quarter ended Aug. 1, 2026, after 2.0% growth in the prior quarter and a 0.8% decline in the fourth quarter of fiscal 2026, and raised its full-year comparable sales outlook to 1.9% to 3.0% from a range that had included a 1.0% decline.
Enterprise revenue was $9.78 billion, up from $9.44 billion a year earlier. Diluted earnings were $1.48 a share, up 70% from $0.87 a year earlier, when $114 million of restructuring charges weighed on results; the company recorded a $6 million reduction to restructuring charges in the latest quarter. Adjusted diluted earnings were $1.47 a share, up 15% from $1.28. Operating income was 4.3% of revenue, versus 2.7% a year earlier. Adjusted operating income was also 4.3% of revenue, versus 3.9% a year earlier.
Chief executive Corie Barry said the company outperformed expectations on comparable sales and on the adjusted operating income rate, and that it drove growth across almost all major product categories, as well as continued strong performance in Best Buy Ads and Marketplace. Barry, who is stepping down as chief executive, said she is wrapping up her remaining months with Best Buy. Jason Bonfig, chief customer, product and fulfillment officer and incoming chief executive effective Nov. 1, 2026, said the company is raising annual financial guidance due to strong first-half performance and momentum entering the second half.
Domestic comparable sales rose to 4.5% from 1.1% a year earlier. Domestic revenue was $9.07 billion, up 4.3% from $8.70 billion. Growth came across most categories, with the largest weighted drivers being computing, home theater, and emerging categories such as AI glasses and trading cards, partially offset by a decline in traditional gaming. Computing and mobile phones were 46% of domestic revenue, versus 44% a year earlier, with comparable sales of 6.8%, versus 3.8%. Consumer electronics comparable sales were 5.6%, versus a 5.2% decline a year earlier. Entertainment comparable sales were down 6.3%, versus 39.3% growth a year earlier.
Domestic online revenue was $3.00 billion, up 5.1% on a comparable basis, and was 33.1% of domestic revenue, versus 32.8% a year earlier. Domestic gross profit rate was 24.0%, versus 23.4% a year earlier. The higher rate was primarily driven by growth in Marketplace and Best Buy Ads and IEEPA tariff refunds of about $34 million, partially offset by lower product margin rates. Domestic adjusted selling, general and administrative expenses were $1.78 billion, or 19.6% of revenue, versus $1.68 billion, or 19.3%, a year earlier. Adjusted SG&A increased primarily due to higher compensation, including incentive compensation; higher Marketplace and Best Buy Ads expenses; and higher advertising, partially offset by lower Best Buy Health expense.
International revenue was $709 million, down 4.2% from $740 million a year earlier. International comparable sales fell 1.8%, after 7.6% growth a year earlier. The revenue decrease was primarily driven by the comparable sales decline and foreign exchange. International gross profit rate was 22.3%, versus 21.8% a year earlier, primarily reflecting improved product margin rates. International adjusted SG&A was $145 million, or 20.5% of revenue, versus $143 million, or 19.3%, a year earlier.
The company raised fiscal 2027 revenue guidance to $42.3 billion to $42.8 billion from $41.2 billion to $42.1 billion. It raised the adjusted operating income rate outlook to 4.4% to 4.5% from 4.3% to 4.4%. It raised adjusted diluted EPS guidance to $6.70 to $6.90 from $6.30 to $6.60. The adjusted effective income tax rate outlook of about 25.5% and capital expenditures of about $750 million were unchanged.
For the third quarter of fiscal 2027, the company expects comparable sales of 1.0% to 3.0% and an adjusted operating income rate of 4.1% to 4.2%.
In the second quarter, the company returned $239 million to shareholders through $203 million of dividends and $36 million of share repurchases. The board authorized a regular quarterly cash dividend of $0.96 a share, payable Oct. 8, 2026. The company expects to spend about $300 million on share repurchases during fiscal 2027.