Best Buy reported its expects a growing online marketplace presenting more housewares to help it build momentum in 2026 after topping Wall Street earnings estimates for its fourth quarter despite a slide in comparable sales.
Net earnings $541 million, or $2.56 per diluted share, versus $117 million, or 54 cents per share, in the year-before quarter. Adjusted for one-time events, earnings per diluted share were $2.61 versus $2.58 in the year-previous period.
A Zacks Investment Research analyst consensus estimate called for earnings per adjusted diluted share of $2.48 and revenue of $13.91 billion.
Comparable sales declined 0.8% year over year, according to Best Buy. Revenue was $13.81 billion versus $13.95 million in the year-earlier quarter. Operating income was $721 million versus $217 million in the year-prior period, while adjusted operating income was $695 million versus $690 million.
Domestic segment sales were $12.58 billion versus $12.72 billion in the year-past quarter as comps decreased 0.8%, Best Buy pointed out. Adjusted operating income was $630 million versus $620 million in the year-past period.
For the full fiscal year, the company posted net earnings of $1.07 billion, or $5.04 per diluted share, versus $927 million, or $4.28 per diluted share, in the year before. Adjusted earnings per share were $6.43 versus $6.37 in the year previous.
Revenue was $41.69 billion versus $41.53 million in the year earlier. Operating income was $1.39 billion versus $1.26 billion in the prior year, while adjusted operating income was $1.79 billion versus $1.76 billion.
In its outlook for the current fiscal year, Best Buy forecast revenue of $41.2 billion to $42.1 billion with comparable sales down 1% to up 1% and adjusted diluted earnings per share of $6.30 to $6.60.
Corie Barry, Best Buy CEO, in a conference call, said the company is determined to advance omnichannel initiatives to enhance the shopper experience with Best Buy.
“Last year, we provided multiple examples of store refreshes and upgrades we implemented in partnership with our vendors, including Meta, Breville, SharkNinja, TCL, Hisense, and LG,” Barrie said. “We are expanding these experiences to yet more additional stores this year, demonstrating the value these are driving for our vendors and our customers.”
Barry noted that for the first time in several years, Best Buy will generate new domestic store growth, with six new locations slated. And it will continue working with third-party platforms, including ChatGPT, OpenAI and Google, to capitalize on new ways to connect with consumers. Within its own operations, Best Buy is refining agenticAI to provide another customer-friendly route to purchase. Best Buy’s recently launched marketplace continues to scale, she said, with categories that have traditionally been lower-share for Best Buy, including small kitchen appliances, benefiting from platform partner activities. Major appliances remain soft in the face of a shaky housing market, the company noted.
As the fiscal year progressive, Barry said Best Buy expects consumers to be cautious spenders focused on value and attracted to sales moments, including with discretionary purchases. She added consumers are willing to spend on pricier products when they feel it’s necessary, as in the case with replacements or when tech innovation appears. Barry also noted that Best Buy can offer value shoppers options including with refurbished goods, and she added that Best Buy expects to get a portion of this year’s larger tax returns.
In announcing the financial results, Barry said, “We are pleased to report better-than-expected profitability for the fourth quarter. Our comparable sales, while within our guidance range, declined 0.8% compared to last year. Our data sources show our overall market share was at least flat, pointing to slightly softer customer demand for our industry during the holiday quarter. For the year, we returned to positive comparable sales and expanded our operating income rate. We also launched and scaled our U.S. digital Marketplace, drastically increasing our available product count for our customers, and grew Best Buy Ads, almost doubling the number of ad partners compared to the prior year.”
