BEST BUY CO INC has recently released its latest 10-Q report. Best Buy Co., Inc. sells technology products and related services in the United States, Canada and other markets, with offerings spanning computing and mobile phones, consumer electronics, appliances, entertainment products and services. The company also operates through a mix of store and online brands, including Best Buy, Best Buy Business, Best Buy Health, Geek Squad, Insignia, Lively and Yardbird, and is headquartered in Richfield, Minnesota.
In Item 2, Management’s Discussion and Analysis, Best Buy said its business is organized into two reportable segments: Domestic, which includes all U.S. operations plus Best Buy Health, and International, which consists of Canada. The company said its fiscal year ends on the Saturday nearest the end of January and that a large share of revenue and earnings typically comes in the fiscal fourth quarter, which includes most of the holiday shopping season.
For the first quarter of fiscal 2027, Best Buy reported revenue of $8.936 billion, up 1.9% from $8.767 billion a year earlier. Comparable sales rose 2.0%, reversing a 0.7% decline in the prior-year quarter, with growth led by gaming and computing and mobile phones, partly offset by weaker major appliances.
Gross profit increased to $2.102 billion from $2.049 billion, while gross margin edged up to 23.5% from 23.4%. SG&A rose 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 increased to $276 million from $202 million, and diluted EPS rose to $1.31 from $0.95.
Best Buy recorded a reduction in restructuring charges of $9 million in the quarter, compared with $109 million of restructuring charges a year earlier. The company said the lower restructuring burden was a major reason operating income improved.
Income tax expense rose to $102 million from $19 million, and the effective tax rate increased to 26.9% from 8.6%. Best Buy said the higher rate reflected prior-year discrete tax impacts tied to restructuring charges and the exit of a component of its Best Buy Health business, along with higher pretax income.
At the end of the quarter, Best Buy operated 1,065 stores, down from 1,108 a year earlier. Domestic stores totaled 924, compared with 951, while International stores fell to 141 from 157, including a drop in Canada Best Buy Mobile stand-alone stores to 12 from 29.
Best Buy said it expects to add four Domestic Best Buy stores by the end of fiscal 2027. It also said it is monitoring tariffs and trade policy developments, including possible refunds related to tariffs paid under the International Emergency Economic Powers Act, but did not recognize any refund amounts in the quarter ended May 2, 2026. The market has reacted to these announcements by moving the company's shares 0.78% to a price of $71.54. Check out the company's full 10-Q submission here.
