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Best Buy Co., Inc. (NYSE: BBY ) reported a mixed first quarter with better-than-expected profitability but a decline in comparable sales.

The electronics retailer saw a drop in sales for appliances, home theater, gaming, and phones, while services and laptops showed growth. Despite the challenges, Best Buy remains optimistic about its full-year outlook, expecting a sequential improvement in comparable sales performance for the rest of the year and maintaining its fiscal 2025 financial guidance. The company is also enhancing customer experience and operational effectiveness and is looking to new revenue streams and sustainability initiatives to strengthen its market position.



Key Takeaways Best Buy's non-GAAP operating income rate improved, but comparable sales fell by 6.1%. Full-year comparable sales are projected to be flat to down 3%.

The company is improving its app, store merchandising, and customer care experience. Best Buy plans to close 10 to 15 stores but will also open new ones. Partnerships with vendors like Google (NASDAQ: GOOGL ) Cloud and Accenture (NYSE: ACN ) are aimed at boosting operational efficiency.

There was pressure on product margin rates and lower credit card profit-sharing revenue in Q1. Services membership is expected to contribute significantly to the gross profit rate. Best Buy anticipates a 3% decline in Q2 comparable sales and a lower non-GAAP operating income rate.

New product launches are expected to drive sales, especially during the back-to-s.

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