Best Buy Q4 EPS beats by $0.15; same-store sales drop 0.8%
Best Buy’s Q4 same-store sales fell 0.8% versus an expected 0.2% rise, with revenue at $13.81 billion missing the $13.88 billion consensus while adjusted EPS of $2.61 beat by $0.15. The company forecasts Q1 same-store sales growth of 1%, FY revenue of $41.2–$42.1 billion and EPS of $6.30–$6.60.
1. Q4 Performance
Best Buy reported a 0.8% decline in same-store sales in the fourth quarter, missing the 0.2% increase analysts expected. Revenue reached $13.81 billion, short of the $13.88 billion consensus, but adjusted EPS was $2.61, beating estimates by $0.15 and triggering an early stock pop of over 8%.
2. Outlook and Guidance
The company forecasts first-quarter same-store sales growth of 1% and full-year revenue between $41.2 billion and $42.1 billion. Adjusted EPS for fiscal 2027 is guided to a range of $6.30–$6.60, compared with $6.43 reported in the prior year.
3. Memory Cost Pressures
Rising memory chip costs driven by heightened demand are expected to pressure margins. Best Buy plans to adjust inventory levels, provide suppliers with longer forecast horizons and refine pricing strategies to manage these cost fluctuations.
4. Category and Customer Trends
Momentum in computing and mobile phone categories continued, with a 5.4% uplift in Q4 sales. Management highlighted that over half of its customers earn more than $100,000 annually and remain highly deal-focused, influencing promotional strategies.