Best Buy's (BBY) latest quarterly results surpassed Wall Street's expectations on Thursday as new technology boosted the quarter.
"We drove growth across almost all our major product categories as well as continued strong performance in our Best Buy Ads and Marketplace initiatives," Best Buy CEO Corie Barry said in the release.
In the second quarter, the company posted same-store sales growth of 4.1%, well above Wall Street's 1.6% estimate and up from 1.6% in the same period last year.
Revenue came in at $9.8 billion, above the $9.6 billion expected, and adjusted earnings were $1.47 per share, also above the $1.38 per share expected.
The stock declined 2% in premarket trading, however.
Best Buy said computing was the largest contributor to comparable sales growth, with sales jumping 6.8%. Due to higher memory costs, the company raised prices in computing by a mid-teens percentage, and unit sales declined by high single digits.
"This material improvement in growth trends compared to prior quarters was due to the combination of our investments in pricing, marketing, delivery speed and product availability," the company said in a release.
Sales in new and emerging categories, such as AI glasses and Pokémon collectible trading cards, more than doubled in Q2 compared to last year.
The company raised its 2027 forecast, which surpassed Wall Street's 2027 outlook estimates across the board.
Best Buy now expects revenue to come in between $42.3 billion and $42.8 billion, compared to its prior guidance of $41.2 billion to $42.1 billion. It also expects sales to rise in the range of 1.9% to 3.0%, up from a previously expected range of a 1% decline to a 1% increase.
Adjusted earnings are expected to be in the range of $6.70 to $6.90, up from the prior guidance of $6.30 to $6.60.
This is the last report under CEO Corie Barry, who will step down from the electronics retailer at the end of the third quarter.
On Oct. 31, Barry will be succeeded by Jason Bonfig, who currently serves as Best Buy's chief customer, product, and fulfillment officer. Barry will stay on as a strategic adviser for six months when Bonfig takes the reins, and Bonfig will replace her on the board.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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