Best Buy tops Q1 estimates; CEO Corie Barry to step down

Best Buy (NYSE:BBY) delivered a stronger-than-expected performance for the first quarter of fiscal 2027, driven by a return to positive comparable store sales and improved operating margins.

Alongside the financial results, the electronics retailer made a major leadership announcement: Chief Executive Officer Corie Barry will step down later this year, handing the reins to Jason Bonfig.

During the period under review, the retailers enterprise revenue climbed to $8,936 million from $8,767 million in the prior-year period, supported by positive comparable sales across the majority of its primary product categories.

Domestic segments saw a 1.8% bump in comparable sales, reversing the negative trend observed last year, while domestic online comparable sales achieved a modest 1.4% expansion.

Growth was notably stronger on the international side, where comparable sales jumped 4.7%, building momentum on a stronger regional demand landscape.

Profitability metrics also saw significant improvement during the quarter.

Best Buy expanded its GAAP operating income margin to 4.1% of revenue, up from 2.5% a year ago.

Adjusted operating margins settled at 4.1%, expanding from 3.8% in Q1 FY26.

This margin discipline helped lift adjusted diluted earnings per share by 11.3% to $1.28, coming in well ahead of Wall Street consensus expectations.

Looking ahead, management chose to maintain its previously issued financial guidance for the full fiscal year despite the strong opening quarter.

Best Buy continues to project full-year adjusted diluted earnings per share in the range of $6.30 to $6.60, indicating a cautious but steady outlook for the remainder of the fiscal year.