Best Buy posts mixed results as holiday sales disappoint but profits improve

Best Buy reported mixed fourth-quarter results on Tuesday, with holiday-season sales declining and falling below Wall Street expectations, even as the retailer demonstrated improved profitability with earnings that topped estimates.

The consumer electronics retailer's holiday-quarter sales came in below analyst projections. However, the company's adjusted earnings per share exceeded expectations, signaling progress in cost management and operational efficiency during a period when consumer demand for electronics remained subdued.

CEO Corie Barry attributed the sales weakness to lackluster demand for consumer electronics during the gift-giving season. Internal company data, however, indicated some positive momentum in certain areas of the business, though details were not fully disclosed in the earnings announcement.

For the current fiscal year, Best Buy expects revenue to range between $41.2 billion and $42.1 billion, compared with $41.69 billion in the most recent fiscal year. The company projects adjusted earnings per share between $6.30 and $6.60, after reporting adjusted earnings per share of $6.43 for the previous fiscal year.

Comparable sales, a metric tracking sales online and in stores open at least 14 months, are anticipated to range from a decline of 1% to an increase of 1% for the fiscal year ahead. This narrow band reflects uncertainty in the consumer electronics market as the retailer navigates ongoing demand challenges while working to sustain profitability gains.