Best Buy reported solid earnings gains and comp growth in a better-than-expected second quarter, setting the stage for the launch of an AI-supported conversational commerce program.
Net earnings were $315 million, or $1.48 per diluted share, versus $186 million, or 87 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, the company reported earnings per diluted share of $1.47, up from $1.28 in the year-earlier period.
A Zacks Investment Research analyst consensus estimate put earnings at $1.37 per adjusted diluted share and revenues at $9.56 billion.
Comparable sales grew 4.1% in the quarter year over year.
Revenues were $9.78 billion versus $9.44 billion in the year-previous quarter. Operating income was $421 million versus $251 million in the year-before period, while adjusted operating income was $417 million versus $369 million.
Domestic revenues advanced to $9.07 billion versus $8.7 billion in the year-past quarter, with comp sales gaining 4.5% and adjusted operating income increasing to $404 million from $351 million.
Best Buy updated its full-year guidance to revenue of $42.3 billion to $42.8 billion from prior guidance of $41.2 billion to $42.1 billion, with comps up 1.9% to 3% from prior guidance of down 1% to up 1%, and adjusted diluted EPS of $6.70 to $6.90 from prior guidance of $6.30 to $6.60.
In a conference call, incoming Best Buy CEO Jason Bonfig, currently serving as chief customer, product and fulfillment officer, said initiatives in home theater and major appliances are paying off in improved growth trends. He added that the company’s development of small-format operations is progressing and receiving a strong early response, while its recently launched marketplace continues to extend Best Buy’s reach into new SKUs and categories.
As artificial intelligence at retail continues to expand its influence, Bonfig noted that Best Buy is upping its agentic AI game. He announced the launch of Ask Blue, a conversational AI shopping and support assistant. “It brings together expertise from across Best Buy’s website in one easy-to-use experience, Bonfig noted. “It combines product knowledge, support, resources, customer reviews, availability and pricing to help customers make informed decisions.”
In announcing the financial results, Bonfig said, “The strength of our Q2 results reflects both the deliberate actions we have taken to position the business for growth and a healthy demand environment for our category. Over the past several years, we have invested in areas that matter most to customers, including elevating specialty expertise in our stores, partnering closely with our vendors to bring innovation to market, and improving fulfillment speed and execution across our supply chain.”
