By Kelly Cloonan

Best Buy projected weak growth for the year ahead as it expects consumers to continue hunting for value, hurting demand for its consumer electronics.

The retailer said Tuesday it expects shoppers will remain thoughtful about big ticket purchases, choosing to spend on higher-priced products when necessary or when there is new technology involved.

Best Buy had said in November it was seeing shoppers willing to spend on new electronics, like the Windows 11 operating systems and updated gaming consoles. The company also said at the time that people are now replacing computers they bought at the start of the pandemic.

For the 2027 fiscal year, Best Buy guided for sales of $41.2 billion to $42.1 billion on adjusted earnings per share of $6.30 to $6.60. The company expects comparable sales to be down 1% to up 1%.

Analysts polled by FactSet forecast revenue around $42.19 billion, adjusted earnings of $6.63 a share and for comparable sales to grow 1.4%.

For the fiscal first quarter, the company forecasts comparable sales growth of about 1%, compared with analyst projections for a 1.8% increase.

The guidance came as the company reported lower revenue for the fiscal fourth quarter as same-store sales declined, with Chief Executive Corie Barry citing slightly softer customer demand for the consumer electronics industry during the holiday period.

However, the company's overall market share was at least flat, Barry said.

The company posted a profit of $541 million, or $2.56 a share, for the fiscal fourth quarter that ended Jan. 31, compared with $117 million, or 54 cents a share, a year earlier.

Adjusted earnings per share were $2.61, compared with estimates of $2.46 according to analysts polled by FactSet.

Revenue fell to $13.81 billion from $13.95 billion. Analysts forecast $13.87 billion.

Same-store sales fell 0.8%. Analysts forecast same-store sales to tick up 0.1%.

The company saw continued strength in computing and mobile phones, as well as strong growth in new categories like artificial-intelligence glasses, 3D printers, collectibles and toys, health rings and personal-computer gaming handhelds.

Best Buy also raised its quarterly dividend by 1% to 96 cents a share from 95 cents a share. The new payout, equal to $3.84 a year, represents an annual yield of about 6.2% based on Monday's closing price of $61.59. The dividend is payable on April 14 to stockholders of record on March 24, the company said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 03, 2026 07:00 ET (12:00 GMT)

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