Shares of American electronics retailer Best Buy (BBY) surged nearly 8% in pre-market trading on Thursday. This followed the company's release of its first-quarter fiscal 2027 results, which showed revenue and profit surpassing Wall Street expectations, alongside a return to comparable sales growth.
According to the earnings report, for the quarter ended May 2, the company's comparable sales increased by 2.0% year-over-year. This marks a strong rebound from a 0.7% decline in the same period last year and exceeded analyst expectations of approximately 1%. Domestic comparable sales grew by 1.8%, while the international segment performed even more strongly with a 4.7% increase. CEO Corie Barry stated that the team executed well in a dynamic macroeconomic environment, delivering revenue in line with expectations and adjusted operating profit that exceeded forecasts.
Key categories driving growth this quarter included gaming, computing, mobile phones, and services. The report showed total revenue reached $8.936 billion, up from $8.767 billion in the prior-year period. Diluted earnings per share were $1.31, a significant 38% increase from $0.95 a year ago. Adjusted earnings per share were $1.28, representing an 11% year-over-year rise.
Simultaneously, Best Buy is actively expanding high-growth businesses beyond its traditional retail operations. In the earnings statement, Barry noted the company is "scaling new profit streams like Best Buy Advertising and Best Buy Marketplace," which are expected to contribute meaningfully over time. Notably, the company recently announced that current CEO Corie Barry will step down at the end of October, to be succeeded by company veteran Jason Bonfig, who is expected to focus on expanding the higher-margin advertising and Marketplace businesses.
Looking ahead, Chief Financial Officer Matt Bilunas indicated that sales from May to date have shown high-single-digit growth. However, considering the tough comparison to a strong June last year driven by the successful launch of the Nintendo Switch 2, comparable sales growth in the second quarter is anticipated to moderate to around 1%. Despite this, Best Buy reaffirmed its full-year fiscal 2027 guidance, expecting comparable sales to range between -1.0% and 1.0%, with adjusted earnings per share projected to be between $6.30 and $6.60.