Best Buy raised its profit outlook for the year, boosted by better-then-expected performance in the first half, even with the estimated impact of tariffs.
But it also lowered the top range of its expected sales for the year, citing general uncertainty related to customer buying behavior in the rest of the year.
The mixed outlook came as the electronics chain posted second-quarter adjusted earnings last week that beat analysts’ expectations at $1.08 a share, compared to the 99 cents analysts had forecast.
Its quarterly revenue, however, slid in just below expectations at $9.54 billion. Comparable sales in the May-to-July quarter rose 1.6%, on top of 6.2% growth in the same quarter a year ago.
“We also delivered improved profitability driven by gross profit rate expansion and continued disciplined expense management, demonstrating the culture we have built around driving cost reductions and efficiencies to help fund investments,” Corie Barry, Best Buy CEO, said in a statement.
Investors have been worried about how new rounds of tariffs to go into effect in upcoming months will affect Best Buy. Executives have said the company has been able to minimize the impact of them so far by buying products in advance and working with vendors, but they have been waiting to see how new rounds of tariffs will materialize.
In June, Barry took over the helm of the company from Hubert Joly. Joly is now executive chairman of the board.
And last month, Best Buy promoted a 13-year company veteran, Matt Bilunas, to be its new chief financial officer, the post previously held by Barry.