Q2 2027 Best Buy Co Inc Earnings Call Transcript
Key Points
- Best Buy Co Inc (BBY) reported better-than-expected Q2 results with comparable sales growth of 4.1%, exceeding guidance of approximately 1%.
- The company raised its full-year fiscal 2027 guidance, now expecting comparable sales growth of 1.9% to 3% and adjusted diluted EPS of $6.70 to $6.90.
- Best Buy Co Inc (BBY) saw strong growth in emerging categories like AI glasses, trading cards, and health rings, with sales more than doubling year-over-year.
- The company's Best Buy Ads and marketplace initiatives are performing well, with marketplace GMV expected to reach $1.3 billion for the full year, up from prior expectations.
- Best Buy Co Inc (BBY) delivered its 10th consecutive quarter of positive comparable sales in computing, driven by product innovation and replacement demand.
- Best Buy Co Inc (BBY) faces headwinds from industry-wide memory cost increases, leading to higher product prices and a decline in computing unit sales.
- The company expects computing sales growth to slow in the back half of the year as it laps strong prior-year comparisons, including the Windows 10 end-of-life tailwind.
- Best Buy Co Inc (BBY) is experiencing higher SG&A expenses, primarily due to increased incentive compensation, which partially offsets gross profit gains.
- The traditional gaming category saw a comparable sales decline due to lapping the successful Switch 2 launch from the prior year.
- The company's international segment reported a revenue decrease of 4.2% year-over-year, impacted by comparable sales decline and negative foreign exchange rates.
Ladies and gentlemen, thank you for standing by. Welcome to Best Buy Second Quarter Fiscal 2027 Earnings Call. At this time, all participants are in a listen-only mode.
After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, press 1 again.
As a reminder, this call is being recorded for playback and will be available by approximately 1:00 PM Eastern Time today. If you need assistance on the call at any time, please press 0 and an operator will assist you.
I will now turn the conference call over to Molly O'Brien, Head of Investor Relations. Molly, please go ahead.
Thank you, and good morning, everyone. Joining me on the call today are Corey Berry, our CEO, and Jason Vonfig, our Chief Customer Product and Fulfillment Officer and incoming CEO.
During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these
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