Best Buy missed quarterly revenue expectations in its fiscal Q1 while cutting its full-year sales and profit guidance as higher tariffs created headwinds, despite rising online sales.

For its fiscal 2026, Best Buy said it now expects $41.1 billion to $41.9 billion of revenue, down from its previous range of $41.4 billion to $42.2 billion. Same-store sales fell 0.7% year over year, more than the 0.57% Wall Street expected. And in Q1, Best Buy revenue fell 0.9% to $8.77 billion, missing estimates of $8.80 billion.

Best Buy online sales were a relative bright spot, growing 2.1% year over year in Q1. That marked the second consecutive quarter of online sales growth for the consumer electronics retailer. In addition, Best Buy grew online sales as a share of total domestic sales, as it rose from 30.8% to 31.7% in Q1.

Best Buy ranks No. 8 in the Top 2000. The Top 2000 database is Digital Commerce 360’s ranking of the largest North American online retailers. Best Buy falls under the Consumer Electronics category. Digital Commerce 360 projects Best Buy ecommerce sales in 2025 to decline 4.4% to $12.04 billion.

Growing role of online sales at Best Buy

“Our omnichannel operations provided strong support for our Q1 online sales, which grew year over year for the second consecutive quarter,” said Corie Barry, CEO of Best Buy, on the company’s earnings call with investors.

Barry said customers are being selective and shrewd in how they dispense their dollars.

“Customers continued to be deal focused and attracted to more predictable sales moments,” Barry told investors. “We believe the consumer has remained resilient while dealing with persistent inflation, making them value focused and thoughtful about big-ticket purchases.”

Barry also addressed the retailer’s omnichannel plans.

“Our strategy is to continue to strengthen our position in retail as the leading omnichannel destination for technology, while at the same time building and scaling new profit streams that we believe will drive returns in the future,” Barry assessed.

Online and physical store journeys converge

“Best Buy’s revised outlook highlights the difficult crosscurrents facing large-format retailers,” said Dr. Shawn DuBravac, CEO and founder of the Avrio Institute, a retail research and consulting firm.

DuBravac cited tariffs, soft discretionary spending, and uncertainty all combining to create a much more challenging landscape for Best Buy.

DuBravac noted that Best Buy is leveraging its online presence across the company.

“It is clear Best Buy’s online strategy isn’t just about digital sales,” he said. “It is also about physical delivery.”

As this continues, DuBravac sees the lines blurring for retailers as they work to deliver unified omnichannel strategies.

“What stands out for me is that physical delivery and pickup are as central to their digital growth as the website or app itself,” DuBravac explained.

He cited Barry’s mention that 70% of pre-order customers selected in-store pickup.

The role of logistics

“The other part of their digital strategy is a focus on engineering a logistics network,” DuBravac added. “Digital commerce is increasingly about what you do in the physical delivery world as it is what you do in the digital world.”

DuBravac pointed to Best Buy recording its strongest on-time ship-to-home delivery performance in three years as evidence that it is focused on results in that area.

Moreover, DuBravac anticipates that Best Buy will continue to build out its omnichannel experience improvements as the new Best Buy marketplace prepares to launch by mid-year.

“Best Buy is making a bold move to allow third-party online purchases to be returned in-store,” Dubravac said.

He called the policy a significant differentiator in a market where return friction erodes trust and loyalty.

“This also reinforces the idea that stores can be an essential part of the customer journey, even when the transaction starts online,” DuBravac stated.

Best Buy Q1 FY26 results

For the 13-week quarter ended May 3, 2025, compared to the 13-week Q1 FY25 ended May 4, 2024, Best Buy reported:

• Total revenue: $8.77 billion, up from $8.85 billion.
• Domestic revenue: $8.13 billion, up from $8.20 billion.
• Enterprise comparable sales: Down 0.7% in Q1.
• Domestic online sales: Up 2.1% in Q1.

Percentage changes may not align due to rounding. Check back for more earnings reports. Click here to read about last quarter’s Best Buy online sales.

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