(Reuters) -Best Buy topped Wall Street estimates for second-quarter sales and profit on Thursday, driven by strong online sales and a surge in demand for artificial intelligence-powered computers, mobile phones and other devices.
However, the top U.S. electronics retailer maintained its annual sales and profit forecasts, citing tariff-induced uncertainty in the second half of the year.
The company capitalized on demand for product replacement in key categories, as more shoppers replaced their devices with AI-enabled computers, mobile phones and gaming gear.
It also received a boost from the June launch of the Nintendo Switch 2 gaming console, which had seen pre-order volumes sell out at its stores and online. The company was a key retail partner for the launch.
“Our sales growth momentum has continued into August, driven by strong customer response to our back-to-school sales events,” CEO Corie Barry said.
Comparable sales for the quarter ended August 2 rose 1.6%, compared with analysts’ average expectations of a 0.52% drop, according to data compiled by LSEG.
Best Buy’s online comparable sales in the U.S. jumped 5.1% from a 1.6% drop last year, while international same-store sales rose 7.6%, rebounding from a 1.8% drop last year.
On an adjusted basis, it earned $1.28 per share, compared with the estimates of $1.21 per share.
The company expects comparable sales for fiscal year 2026 to range between a 1% drop and a 1% rise and an adjusted profit of between $6.15 and $6.30 per share.
(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva)
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