LONDON (ShareCast) - (Sharecast News) - Best Buy reported second-quarter results that beat sales expectations on Thursday, posting its first quarterly sales growth in more than three years as demand for gaming, computing, and mobile devices helped offset the drag from restructuring costs and lower margins.
Revenue for the quarter ended 2 August rose 1.6% to $9.44bn, above analyst forecasts and ending a streak of 14 straight quarterly sales declines.

Comparable sales also rose 1.6%, compared with consensus estimates of a 0.52% drop, according to LSEG data.

Adjusted earnings came in at $1.28 per share, ahead of expectations, though down from $1.34 a year earlier.

"This better-than-expected sales growth was driven by a mix of new technology innovation, our relentless focus on a seamless omni-channel customer experience and our strong vendor partnerships," said chief executive Corie Barry.

She added that momentum had "continued into August driven by strong customer response to our back-to-school sales events."

Despite the sales beat, net profit fell 36% to $186m, or 87 cents a share, partly due to $114m in charges tied to layoffs and asset impairments under a restructuring plan "intended to redirect resources for better alignment with changing customer behaviors and the company's strategy."

Best Buy did not disclose the number of employees affected.

Domestic comparable sales rose 1.1%, led by gaming, computing, and mobile phones, while online sales increased 5.1%.

International sales gained 7.6%, boosted by new Best Buy Express locations in Canada.

However, gross profit margins narrowed to 23.4% from 23.5% in the US and to 21.8% from 23.9% internationally, reflecting a heavier sales mix in lower-margin categories such as gaming hardware.

The retailer reiterated its full-year outlook for adjusted earnings of $6.15 to $6.30 a share and revenue of $41.1bn to $41.9bn, citing potential risks from tariffs and consumer spending uncertainty heading into the holiday season.

Chief financial officer Matt Bilunas said third-quarter sales growth was expected to be "similar to what we just delivered in Q2," with operating margins likely to match last year's levels.

At 0752 EDT (1252 BST), shares in Best Buy Co were down 1.56% in premarket trading in New York, at $74.30.

Reporting by Josh White for Sharecast.com.

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