Best Buy beats earnings expectations: The stock falls despite stronger outlook

It was a busy week for retail earnings on Wall Street, with major companies including Dollar General, Dollar Tree, Ulta Beauty and Gap reporting their quarterly results.

Dollar General reported a 3.5% increase in comparable sales during the second quarter and raised its full-year comparable sales growth forecast to between 2.5% and 2.9%. The stronger outlook and continued demand for lower-priced products helped Dollar General shares rise following the announcement.

Ulta Beauty also exceeded Wall Street’s expectations, with quarterly sales reaching approximately $3.04 billion and earnings of $6.55 per share. Meanwhile, Gap raised its full-year profit outlook, although weakness at Old Navy and Athleta continued to offset stronger performance at the company’s namesake Gap brand.

Best Buy beats expectations

Best Buy reported second-quarter adjusted earnings of $1.47 per share on revenue of approximately $9.78 billion, exceeding analysts’ expectations of $1.39 per share and $9.59 billion, respectively. Comparable sales increased 4.1%, while domestic comparable sales advanced 4.5% compared with the previous year.

The company also raised its full-year revenue forecast to between $42.3 billion and $42.8 billion and increased its adjusted earnings guidance to $6.70–$6.90 per share. Nevertheless, Best Buy shares fell approximately 4.4% on Thursday as investors focused on the contribution from a $34 million tariff refund and took profits following the stock’s strong rally earlier this year.

Investors should closely watch several key indicators:

• U.S. comparable sales growth

• Computing and home theater demand

• Online sales and Marketplace performance

• Best Buy Ads revenue and profitability

• Gross margins and the impact of tariffs

• Management’s full-year guidance

Best Buy (BBY) Technical Analysis

Best Buy (NYSE: BBY) shares came under heavy selling pressure following the company’s quarterly earnings report, falling as much as 12% intraday before recovering to close around $83.56. The stock briefly dropped to $76.70 but rebounded strongly from the lows, suggesting that buyers remain active near the $79–$80 support zone. However, BBY continues to trade below the Bollinger Bands’ middle line near $85.11, while the Relative Strength Index (RSI) has slipped to approximately 47, indicating neutral to slightly bearish momentum. A sustained move above $85.11 could improve the short-term outlook and open the way toward resistance at $87.44 and subsequently $89.39. Conversely, a break below the key support area around $79.63–$80.83 would weaken the technical structure and could expose the stock to another test of the recent low near $76.70.

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