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Key Takeaways
- Best Buy reported first-quarter earnings that beat analysts’ estimates as services and laptop demand helped offset slowing sales.
- The electronic retailer’s domestic gross profit rate improved, boosted by more paid memberships.
- Best Buy shares surged over 10% in early trading Thursday following the release, lifting them into positive territory for the year.
Shares of Best Buy (BBY) jumped over 10% in early trading Thursday after the electronics retailer beat profit forecasts on growing demand for services and laptop computers.
The company posted fiscal 2025 first-quarter diluted earnings per share of $1.13, well above analyst estimates compiled by Visible Alpha. Revenue fell 6.5% from the year-ago period to $8.85 billion, short of expectations. Comparable store sales declined 6.1%, though that was an improvement from the 10.1% drop reported in the same period a year earlier.
‘Progress on FY25 Priorities’
Domestic revenue slid 6.8% to $8.20 billion, but domestic gross profit rose to 23.4% from 22.6%, which the company credited to gains in the services category, including membership offerings. Laptop sales helped offset pullbacks in purchases of appliances, home theater, gaming, and mobile phones. International revenue was 3.3% lower to $6.44 million, with a gross profit rate of 22.6% versus 23.7% in fiscal 2024.
Best Buy CEO Corie Barry said the company “made progress on our FY25 priorities, grew our paid membership base and drove improvements in our customer experiences.”
Gains Lift Best Buy Stock Into Positive Territory for 2024
Shares of Best Buy were 10.3% higher at $79.33 as of 10:40 a.m. ET Thursday, lifting them into positive territory for the year.
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