BEST BUY CO INC has recently released its 10-Q report. Best Buy Co., Inc. sells technology products and related services in the United States, Canada and other markets through stores and websites. Its offerings span computing and mobile phones, consumer electronics, appliances, entertainment products and services such as delivery, installation, repair, technical support, memberships and marketplace commissions.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Best Buy said its first quarter of fiscal 2027 produced $8.936 billion of revenue, up 1.9% from $8.767 billion a year earlier. Comparable sales increased 2.0%, after a 0.7% decline in the prior-year quarter, with growth led by gaming, computing and mobile phones and partially offset by weaker major appliances.
Gross profit rose to $2.102 billion from $2.049 billion, while gross margin edged up to 23.5% from 23.4%. SG&A increased to $1.741 billion from $1.721 billion, but as a share of revenue it slipped to 19.5% from 19.6%.
Operating income climbed to $370 million from $219 million, and operating margin improved to 4.1% from 2.5%. Net earnings rose to $276 million from $202 million, and diluted EPS increased to $1.31 from $0.95.
Best Buy recorded a $9 million reduction to restructuring charges in the quarter, compared with $109 million of restructuring charges in the prior-year period. The company said the change was tied to adjustments for termination benefits connected with a labor and store optimization initiative that began in the second quarter of fiscal 2026.
Income tax expense increased to $102 million from $19 million, and the effective tax rate rose to 26.9% from 8.6%. Best Buy attributed the increase to prior-year discrete tax impacts tied to restructuring charges and the exit of a component of its Best Buy Health business, along with higher pre-tax income.
By segment, Domestic revenue reached $8.249 billion, up 1.5% from $8.127 billion. International revenue was $687 million, up from $640 million a year earlier.
The store count fell to 1,065 from 1,108 a year earlier. Domestic stores totaled 924, down from 951, while International stores totaled 141, down from 157. Best Buy said it expects to add four Domestic Best Buy stores by the end of fiscal 2027.
Best Buy also said it is monitoring tariff developments and is participating in the U.S. Customs and Border Protection process for refunds of tariffs paid under IEEPA. It did not recognize any refund amounts in the quarter ended May 2, 2026. As a result of these announcements, the company's shares have moved 0.78% on the market, and are now trading at a price of $71.54. For the full picture, make sure to review BEST BUY CO INC's 10-Q report.
