Best Buy Q2 Earnings Call Highlights

Best Buy (NYSE:BBY) reported second-quarter fiscal 2027 results that exceeded its prior expectations, supported by growth in computing, home theater, mobile phones and newer product categories. The company raised its full-year outlook while outlining continued investments in retail media, its third-party marketplace, store formats and AI-enabled shopping tools. Revenue for the quarter totaled $9.8 billion, up 3.6% from a year earlier. Enterprise comparable sales increased 4.1%, above the company’s prior expectation for roughly 1% growth. Adjusted operating income rate rose about 40 basis points year over year to 4.3%, while adjusted diluted earnings per share increased 15% to $1.47. CEO Corie Barry, who said the call would be her final earnings call as chief executive, attributed the performance to employee execution and momentum in categories tied to replacement needs and product innovation. Jason Bonfig, the company’s chief customer, product and fulfillment officer and incoming CEO, said Best Buy’s results reflected both internal initiatives and a healthy demand backdrop for its product categories. Category growth led by computing and home theater Computing was the largest weighted comparable-sales driver in the quarter, marking its 10th consecutive quarter of positive comparable sales. Best Buy Business sales rose 21% from the prior year, helping support the category. Barry said the company’s business-to-business operation generates more than $1.1 billion in annual sales and has been growing at roughly 15% to 20% in the first half. Home theater was the second-largest weighted comp contributor, with the company reporting domestic television sales growth of more than 10% year over year. Bonfig cited product assortment, inventory availability, delivery and installation improvements, as well as the launch of RGB television technology. Best Buy said it will be the only national retailer offering RGB TVs for customers to discover, experience and purchase during the next year. The company also reported that sales in a group of emerging categories—including AI glasses, trading cards and health rings—more than doubled from a year earlier. Bonfig said those categories collectively contributed about 1 percentage point to comparable sales during the quarter. Mobile phones delivered a sixth consecutive quarter of growth, aided by expanded carrier partnerships and store operating improvements. Major appliances posted slight sales growth, which management attributed to investments in pricing, marketing, product availability and faster delivery. Best Buy said next-day appliance availability is now offered in nearly all metro delivery locations, compared with less than half in the first quarter. Traditional gaming sales declined as the company lapped the prior-year launch of the Nintendo Switch 2. Management expects the fourth-quarter release of Grand Theft Auto VI to support gaming software, hardware and accessories. Marketplace, advertising and digital initiatives Best Buy continued to highlight its marketplace and advertising operations as growing profit streams. Best Buy Ads is on track to grow 10% this year after generating $900 million in collections last year, Bonfig said. The company’s U.S. marketplace reached approximately $300 million in gross merchandise value during the second quarter. Best Buy now expects marketplace GMV of $1.3 billion for the full year, citing stronger-than-anticipated performance. The company plans to begin adding international marketplace sellers later in the quarter, expanding participation beyond sellers with a U.S. physical presence. Management said marketplace and advertising growth contributed to domestic gross profit rate expansion. Domestic gross profit rate increased 60 basis points to 24%, also benefiting from $34 million in tariff.