Best Buy Co., Inc.

Enterprise revenue was $8.9 billion, up 1.9% year over year; comparable sales increased 2%; adjusted operating income rate was 4.1%, up 30 basis points versus last year; and adjusted diluted EPS was $1.28, up 11%. Domestic revenue increased 1.5% to $8.2 billion, while international revenue rose 7% to $687 million. Domestic gross profit rate improved to 23.7% from last year, and international gross profit rate was 21.5%, down 50 basis points. For FY27, Best Buy kept guidance unchanged: revenue of $41.2 billion to $42.1 billion, comparable sales of down 1% to up 1%, adjusted operating income rate of 4.3% to 4.4%, adjusted effective tax rate of about 25.5%, adjusted EPS of $6.30 to $6.60, capex of about $750 million, and share repurchases of about $300 million. For Q2, management expects comparable sales of about 1% and an operating income rate of about 3.9%, flat to last year.

Corie Barry said the quarter showed progress toward a more stable business, with innovation accelerating and momentum building in customer experience and incremental profit streams. She emphasized that Best Buy is strengthening its position as a leading omnichannel technology retailer while scaling new profit pools like ads and marketplace. Her tone was confident and constructive, and she framed Jason Bonfig’s succession as the right next chapter for the company.

Matt Bilunas said Q1 outperformed expectations mainly through 2% comps versus about 1% guided and a 4.1% adjusted operating margin driven by SG&A leverage. He cited domestic gross profit rate of 23.7%, helped by Marketplace, Best Buy Ads and traditional services, and noted higher domestic SG&A tied to ads/marketplace investment and the lapping of a favorable tax settlement. He also highlighted $202 million returned to shareholders via dividends, inventory up almost 8% and accounts payable up almost 10%, then reiterated FY27 guidance unchanged with $750 million of capex and about $300 million of buybacks.

Analysts focused on the drivers behind May’s strength, especially whether it was broad-based or helped by appliances, tax refunds, or pre-buying ahead of memory cost increases. Management said May growth was broad-based across most categories, with improvements in TVs, computing, mobile and emerging categories, and said they were not seeing evidence that customers were pulling forward purchases because of memory concerns. Questions also centered on RGB TV exclusivity and appliance trends; management said RGB launches mid-June with Best Buy the only national retailer for about a year, and appliances improved on better pricing, availability, delivery speed and marketing, with positive May trends but no guarantee yet on persistence.