Core Insights - Best Buy's stock has experienced significant volatility, with a year-to-date decline of 23%, underperforming the S&P 500 [1] - The company reported a 2% decrease in net sales and a 5% decline in earnings per diluted share in Q1 2026, attributed to weaknesses in specific product categories [1][8] - Historical data indicates that during downturns, Best Buy's stock has lost substantial value, including a 45% drop in 2020 and a 55% decline during the inflation crisis of 2022 [2][6] Financial Performance - Best Buy's current stock price is approximately $66, with a forward P/E ratio of 11x, slightly below its four-year average of 12x [7] - Analysts have set a 12-month price target of $81, suggesting a potential upside of over 20% from the current price [7] - The company has revised its fiscal 2026 revenue guidance downward to a range of $41.1 billion to $41.9 billion, reflecting cautious consumer behavior amid persistent inflation [8] Market Conditions - Best Buy's reliance on imported electronics makes it vulnerable to tariff fluctuations, with 30-35% of merchandise sourced from China and 40% from other countries subject to tariffs [3][4] - The company has implemented selective price increases to mitigate the impact of increased tariff-related costs [3] - Consensus forecasts indicate flat revenue growth for fiscal 2026, with a modest 2% increase projected for fiscal 2027, highlighting ongoing macroeconomic challenges [8]

Core Viewpoint - Best Buy Co Inc reported disappointing first-quarter 2026 earnings, with sales and adjusted earnings falling short of analyst expectations [1][2]. Financial Performance - First-quarter sales decreased by approximately 1% year-over-year to $8.77 billion, missing the analyst consensus estimate of $9.22 billion [1]. - Adjusted earnings were reported at $1.15, below the consensus of $1.31 [2]. - The gross profit margin remained stable at 23%, while the operating margin declined from 3.5% to 2.5% [2]. Guidance and Outlook - The company updated its full-year guidance, expecting annual comparable sales growth to range from a decline of 1% to an increase of 1%, with an adjusted operating income rate similar to last year at approximately 4.2% [2][4]. - For Q2 FY26, comparable sales are expected to be slightly down compared to last year, with an adjusted operating income rate projected at approximately 3.6% [3]. - Fiscal 2026 adjusted earnings guidance was lowered from a range of $6.20-$6.60 per share to $6.15-$6.30 per share, compared to the consensus of $6.13 per share [3]. - Sales guidance was also reduced from $41.4 billion to $42.2 billion down to a new range of $41.1 billion to $41.9 billion, with the consensus around $41.44 billion [3]. Revenue Breakdown - Domestic revenue of $8.13 billion decreased by 0.9%, primarily due to a 0.7% decline in comparable sales [4]. - The decline in comparable sales was driven by decreases in home theater, appliances, and drones, partially offset by growth in computing, mobile phone, and tablet categories [4]. - Domestic online revenue increased by 2.1% on a comparable basis to $2.58 billion, representing 31.7% of total domestic revenue compared to 30.8% last year [4].

Best Buy (BBY) Q1 2026 Earnings Call May 29, 2025 08:00 AM ET Company Participants Mollie O'Brien - Vice President, Investor RelationsCorie Barry - CEOMatt Bilunas - CFO & Senior EVP of Enterprise StrategyJason Bonfig - Senior Executive VP of Customer Offerings & FulfillmentSteven Zaccone - Director, Equity Research, Hardlines RetailJonathan Matuszewski - Senior Vice President Conference Call Participants Scot Ciccarelli - MD & Senior Research AnalystMichael Baker - Managing Director, Senior Research Analys ...

Best Buy Co., Inc. (NYSE:BBY) Q4 2024 Earnings Conference Call March 4, 2025 8:00 AM ET Company Participants Mollie O'Brien - Head of Investor Relations Corie Barry - Chief Executive Officer Matt Bilunas - Chief Financial Officer Jason Bonfig - Senior Executive Vice President, Customer Offerings and Fulfillment Conference Call Participants Christopher Horvers - JPMorgan Brian Nagel - Oppenheimer Jonathan Matuszewski - Jefferies Michael Lasser - UBS Investment Bank Anthony Chukumba - Loop Capital Markets Oli ...