Best Buy’s Quarterly Earnings Increased Despite Declining Same-Store Sales

In the last quarter, electronics retailer Best Buy brought in earnings of $291 million, about $1.34 a share. This is significantly more than the $274 million reported for the same quarter last year.

However, sales fell from $9.58 billion to $9.29 billion, a 3% drop. Same-store sales declined 2.3%, which was less than the 6.1% drop in the previous quarter.

For the fiscal year, Best Buy predicts revenue to land between $41.3 billion and $41.9 billion. Previously, the company expected $41.3 billion to $42.6 billion. Comparable sales will likely fall in the 1.5% to 3% range.

Higher interest rates and inflation have put retailers like Best Buy in a bind. Consumers, worried about the economy, have been delaying spending on gadgets and electronics.

Appliances, home theater, and gaming dragged comparable sales down for the quarter. Somewhat offsetting the loss, tablets, computing, and services grew slightly.

After multiple quarters of declining sales, Best Buy has begun updating stores and enhancing its membership services. The electronics giant hopes new products, like computers infused with AI, will bring more value to consumers. Additionally, new products will also lower prices on older devices, further enticing customers to spend.

“We see a consumer who is seeking value and sales events, and one who is also willing to spend on high price point products when they need to or when there is new compelling technology,” said Best Buy CEO Corie Barry in the Q2 fiscal 2025 earnings report.

Best Buy recently announced a plan to improve the customer experience. With a new tagline, “imagine that,” the company is adding more trained salespeople in its stores and creating a stronger YouTube presence to generate curiosity.

Best Buy also updated its app to include real-time delivery tracking of large items, like TVs and appliances. Consumers now see street-level views as the delivery approaches and receive updates should the estimated delivery time change.