Best Buy has raised its full-year sales and profit forecasts, betting that an artificial intelligence-driven device upgrade cycle will help offset cautious consumer spending. The U.S. electronics retailer now expects annual revenue of $42.3 billion to $42.8 billion, up from its previous forecast of $41.2 billion to $42.1 billion. It also lifted its adjusted earnings-per-share forecast to $6.70-$6.90, compared with its earlier range of $6.30-$6.60.
The company said demand for newer computers and smartphones powered by the latest technology has supported sales, while computing, home theater, AI glasses and trading cards were among the strongest-performing categories in the second quarter. Best Buy expects comparable sales to grow 1.9% to 3%, improving from its previous forecast of a decline of 1% to growth of 1%. However, the retailer noted that consumers remain value-conscious and are carefully weighing major purchases amid elevated household costs.
Best Buy reported adjusted second-quarter earnings of $1.47 per share, beating analysts’ estimate of $1.38. The company is also expanding its marketplace and advertising businesses, which are becoming increasingly important contributors to gross profit margins. Meanwhile, a leadership transition is planned, with company veteran Jason Bonfig set to succeed Corie Barry as CEO later this year, while Anne Bramman has been appointed as the new finance chief. Best Buy shares, which have risen about 30% this year, fell roughly 3% in choppy premarket trading.
Pic Courtesy: google/ images are subject to copyright
