Best Buy Trims FY26 Outlook On Tariffs; Q1 Adj. EPS Tops View

Best Buy

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(RTTNews) - Electronics retailer Best Buy Co., Inc. (BBY) reported Thursday a net profit for the first quarter that declined from last year, hurt by higher restructuring charges and lower revenues. Earnings per share topped analysts' estimates, but quarterly revenues missed it. The companies also trimmed its guidance for the full-year 2026 to reflect the impact of tariffs.

In pre-market trading, Best Buy shares are down $2.12 or 2.96 percent at $69.40 on the NYSE.

For the first quarter, Best Buy reported net earnings of $202 million or $0.95 per share, down from $246 million or $1.13 per share in the prior-year quarter, hurt by higher restructuring charges.

Excluding items, adjusted earnings for the quarter was $1.15 per share, compared to $1.20 per share in the year-ago quarter.

On average, 21 analysts polled expected the company to report earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.

Enterprise revenues for the quarter declined to $8.77 billion from $8.85 billion in the same quarter last year. Analysts had a consensus revenue estimate of $8.82 billion.

Comparable sales decreased 0.7 percent, compared to a decline of 6.1 percent last year.

Domestic revenue decreased 0.9 percent from last year to $8.13 billion, primarily driven by a comparable sales decline of 0.7 percent. Domestic online revenue of $2.58 billion increased 2.1 percent from last year.

International revenue declined 0.6 percent to $640 million, primarily driven by a negative foreign currency impact of approximately 450 basis points and a comparable sales decline of 0.7 percent.

Operating margin contracted 100 basis points to 2.5 percent from last year.

The company also announced its board of directors has authorized the payment of a regular quarterly cash dividend of $0.95 per common share, payable on July 10, 2025, to shareholders of record as of the close of business on June 19, 2025.

Looking ahead to fiscal 2026, the retailer now projects adjusted earnings in a range of $6.15 to $6.30 per share on revenues between $41.1 billion and $41.9 billion, with comparable sales between a decline of 1.0 percent and a growth of 1.0 percent.

Previously, the company expected adjusted earnings in a range of $6.20 to $6.60 per share on revenues between $41.4 billion and $42.2 billion, with a comparable sales growth of 0.0 to 2.0 percent.

The Street is looking for earnings of $6.17 per share on revenues of $41.43 billion for the year.

For the second quarter, the company expects comparable sales to be slightly down to last year.

The company said it still expects to spend approximately $300 million on share repurchases during fiscal 2026.

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