Best Buy raises annual forecasts as shoppers snap up holiday deals

By Savyata Mishra

Nov 25 (Reuters) - Electronics retailer Best Buy BBY.N raised its annual sales and profit forecasts on Tuesday, banking on strong holiday demand as shoppers seize steep discounts to upgrade their laptops, smartphones and other household electronics.

Computing and tablets, which make up about a third of the retailer's revenue, saw robust growth as consumers adopted new technology and replaced devices bought during the pandemic. Gaming demand also provided a lift, helped by the launch of Nintendo's Switch 2 earlier this year.

"Customers remain resilient, but deal focused and attracted to more predictable sales moments," CEO Corie Barry said on a post-earnings call.

The company has been expanding its online reach, rolling out a U.S. marketplace in August to broaden its product assortment and compete with larger e-commerce rivals. Domestic online sales grew 3.5% in the quarter, while international same-store sales rose 6.3%.

The retailer has implemented a range of strategies to blunt the impact of tariffs, including manufacturing flexibility, cost negotiations and supply chain diversification.

Best Buy could see near-term gains from Microsoft's Windows upgrades and new AI-powered laptops, Truist analyst Scot Ciccarelli said, adding that a more consistent product refresh cycle is needed to sustain growth.

Best Buy now expects comparable sales for fiscal year 2026 to rise in the range of 0.5% to 1.2%, compared with its prior expectation of 1% drop to 1% rise.

It forecast adjusted profit-per-share of $6.25 to $6.35, compared with its prior target of $6.15 to $6.30.

Comparable sales for the quarter ended November 1 jumped 2.7%, beating analysts' average estimate of a 1.62% rise, according to data compiled by LSEG.

It earned a profit of $1.40 per share on an adjusted basis, above estimates of $1.31.