Best Buy Q2 Earnings: Domestic Sales Drop 3%, Raises FY25 Outlook, CEO Highlights Tablet and Computing Growth

Best Buy Co., Inc BBY reported fiscal second-quarter adjusted EPS of $1.34, beating the street view of $1.16. Quarterly sales of $9.29 billion beat the analyst consensus of $9.24 billion. The stock gained after the print.

Quarterly domestic revenue of $8.62 billion decreased 3.0% year-over-year. Comparable sales fell 2.3%.

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The company incurred $7 million of restructuring charges in the quarter.

Domestic online revenue of $2.72 billion decreased 1.6% on a comparable basis.

From a merchandising perspective, the largest drivers of the decline in comparable sales on a weighted basis were appliances, home theater, and gaming. Growth in the tablets, computing and services categories partially offset these drivers.

The domestic gross profit rate was 23.5%, up from 23.1% last year, due to improved financial performance in the company’s services category, including its membership offerings partially offset by lower product margin rates.

International revenue of $665 million decreased 4.0% compared to last year. The international gross profit rate was 23.9%, compared to 24.2% last year. The lower gross profit rate was primarily due to unfavorable product margin rates.

Dividend: The firm approved a regular quarterly dividend of $0.94 per share.

CEO Corie Barry: “We delivered strong results in our Domestic tablet and computing categories, which together posted comparable sales growth of 6% versus last year.”

Outlook: Best Buy raised the fiscal 2025 adjusted EPS outlook to $6.10—$6.35 (prior $5.75—$6.20) versus the $6.08 estimate. The company cut the high end of its prior revenue outlook to $41.3 billion—$41.9 billion (prior $41.3 billion—$42.6 billion) versus the $41.81 billion estimate.

For the third quarter of fiscal 2025, the company expects comparable sales to decline by approximately 1.0% and the adjusted operating income rate to be approximately 3.7%.

Best Buy stock gained over 14% in the last 12 months.

Price Action: BBY shares were trading higher by 13.60% to $99.71 premarket at the last check on Thursday.

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