Best Buy has issued a subdued growth forecast for the upcoming fiscal year, citing persistent consumer preference for value and its impact on electronics demand.

The retailer indicated that while comparable-store sales returned to growth in fiscal 2026, momentum is expected to weaken in the next fiscal year as shoppers continue to prioritize affordability, pressuring consumer electronics sales.

Best Buy noted that customers remain cautious with major purchases, opting for higher-priced items only when necessary or when new technology is involved.

The stock recently rose 11% in premarket trading to $68.39.

For the fourth quarter of fiscal 2026, ended January 31, Best Buy reported a profit of $541 million, or $2.56 per share, up from $117 million, or $0.54 per share, in the same period a year earlier.

Adjusted earnings per share were $2.61, surpassing the $2.46 expected by analysts surveyed by FactSet.

Revenue declined to $13.81 billion from $13.95 billion, compared with analyst expectations of $13.87 billion.

Comparable-store sales fell 0.8%, while analysts had projected a slight increase of 0.1%.

In November, the company had observed that consumers were willing to spend on new electronics such as Windows 11 devices and next-generation gaming consoles, with some beginning to replace computers purchased early in the pandemic.

Last quarter, the company maintained strength in computers and mobile phones, while emerging categories like AI glasses, 3D printers, collectibles and toys, health rings, and PC gaming handhelds showed strong growth.

Outlook for fiscal 2027:

- Sales: $41.2 billion to $42.1 billion - Adjusted earnings per share: $6.30 to $6.60 - Comparable-store sales: Expected to range from -1% to +1%

Analysts surveyed by FactSet had projected revenue of approximately $42.19 billion, adjusted earnings per share of $6.63, and comparable-store sales growth of 1.4%.

For the first quarter, the company expects comparable-store sales to increase about 1%, compared with analyst expectations of 1.8% growth.

CEO Corie Barry stated, "Our data shows that our overall market share remained at least flat, indicating slightly weaker customer demand across the industry during the holiday quarter."

Best Buy expects to continue operating in a complex macroeconomic environment.

The company also raised its quarterly dividend by 1%, from $0.95 to $0.96 per share, bringing the annual total to $3.84. Based on Monday's closing price of $61.59, the annualized dividend yield is approximately 6.2%.

The dividend will be paid on April 14 to shareholders of record on March 24.