Tech Upgrades Drive Best Buy's Sales Boost

Best Buy has raised its yearly sales forecast, thanks to a strong third quarter. The electronics giant beat Wall Street's expectations, with customers eager to upgrade their tech gadgets. They're buying more computers, gaming consoles, and smartphones. The company now expects to make between $41. 65 billion and $41. 95 billion this year. That's more than they thought before. They also expect to earn between $6. 25 and $6. 35 per share. This is a bit higher than their previous estimate. Best Buy's CEO, Corie Barry, said the sales were better than expected. She said people are upgrading or replacing their old tech. New products and innovations are also driving sales. Both online and in-store sales grew. The company's earnings per share were $1. 40. That's higher than the expected $1. 31. Revenue was $9. 67 billion, which is more than the expected $9. 59 billion. Best Buy has been waiting for several things to boost sales. These include more people moving houses, new tech innovations, and consumers spending more on non-essential items. It seems like some of these factors are starting to kick in. Sales of the Nintendo Switch 2, new iPhones, and AI-enabled laptops are doing well. These categories helped drive sales in the last quarter. However, Best Buy's net income fell to $140 million. That's less than the $273 million they made last year. But revenue did increase from $9. 45 billion to $9. 67 billion. Comparable sales increased by 2. 7% year over year. In the U. S. , the metric jumped 2. 4%. Shoppers bought more computers, gaming systems, and mobile phones. But they bought fewer appliances and home theaters. Best Buy's annual revenue has been dropping for the past three years. But with the updated guidance, they expect to make a bit more than last year's $41. 53 billion. As of Monday, Best Buy's shares have dropped by about 12% this year. That's compared to the S&P 500's 14% gain.