Q1 2026 Best Buy Co Inc Earnings Call Transcript
Key Points
- Best Buy Co Inc (BBY) delivered better-than-expected profitability in Q1 with an adjusted operating income rate of 3.8% on revenue of $8.8 billion.
- The company saw a 6% comparable sales growth in the combined computing and tablet categories, indicating strong demand in these segments.
- Online sales grew year over year for the second consecutive quarter, making up nearly 32% of total domestic sales, with a strong on-time ship-to-home delivery performance.
- Best Buy Co Inc (BBY) reported material year-over-year improvement in its domestic relationship Net Promoter Score, reflecting enhanced customer satisfaction.
- The company is on track to launch its improved search experience across digital platforms, which will include AI-powered prompts and natural conversational filtering to enhance customer experience.
- Best Buy Co Inc (BBY) reported a domestic comparable sales decline of 0.7%, with declines in home theater, appliances, and drones offsetting growth in other categories.
- The company is facing challenges due to the current tariff environment, with tariffs impacting various product categories differently, potentially affecting costs and pricing strategies.
- International revenue decreased by 0.6% versus last year, with a negative foreign currency impact of approximately 450 basis points.
- Adjusted diluted earnings per share decreased by 4% to $1.15, partly due to lower investment income from a reduced average cash balance and lower short-term interest rates.
- Best Buy Co Inc (BBY) incurred $109 million in restructuring charges, primarily associated with a restructuring initiative within its Best Buy Health business.
Ladies and gentlemen, thank you for standing by. Welcome to Best Buy's first-quarter fiscal 2026 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded for playback and will be available by approximately 1:00 PM Eastern Time today. (Operator Instructions)
I will now turn the conference call over to Mollie O'Brien, Head of Investor Relations. Please go ahead.
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Thank you, and good morning, everyone. Joining me on the call today are Corie Barry, our CEO; Matt Bilunas, our CFO; and Jason Bonfig, our Senior Executive Vice President of Customer Offering and Fulfillment.
During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release, which is available on our website, investors.bestbuy.com
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