Best Buy (BBY) Q1 2027 earnings summary

Executive summary

• Comparable sales increased 2.0% year-over-year, exceeding expectations, with strong performance in gaming, computing, mobile phones, and services, and positive contributions from Best Buy Ads and Marketplace initiatives.

• Revenue for the quarter was $8.94 billion, up 1.9% year-over-year, with net earnings of $276 million and diluted EPS rising to $1.31.

• Adjusted operating income rate reached 4.1%, and adjusted diluted EPS grew 11% year-over-year to $1.28.

• CEO succession announced: Jason Bonfig to assume CEO role on November 1, with a seamless transition underway; Corie Barry to step down later in 2026.

• Strategic focus on omni-channel retail, new profit streams, and scaling Best Buy Ads and Marketplace initiatives.

Financial highlights

• Gross profit was $2.10 billion, with a gross margin of 23.5%, up from 23.4% year-over-year.

• Operating income rose to $370 million (4.1% of revenue), up from $219 million (2.5% of revenue) year-over-year.

• SG&A expenses were $1.74 billion, or 19.5% of revenue, nearly flat year-over-year.

• Cash and cash equivalents increased to $1.75 billion, up from $1.15 billion a year ago.

• Cash provided by operating activities was $375 million, a significant improvement from a $160 million outflow in the prior year.

Outlook and guidance

• FY27 guidance maintained: revenue of $41.2–$42.1 billion, comparable sales of -1% to +1%, adjusted operating income rate of 4.3–4.4%, and adjusted EPS of $6.30–$6.60.

• Q2 comparable sales expected to grow ~1%, with operating income rate flat year-over-year at 3.9%.

• Capital expenditures projected at $750 million for FY27; $300 million planned for share repurchases.

• Management expects to increase the domestic store count by four locations by the end of fiscal 2027.

• Ongoing monitoring of tariffs and trade policy continues, with no recognized refunds in the quarter and uncertainty regarding future impacts.