Best Buy raised its full-year sales and profit forecasts on Thursday, betting on an AI-fueled device upgrade and growth in newer businesses such as advertising and its marketplace to offset weakness in discretionary spending.
The top U.S. electronics retailer expects annual revenue of US$42.3 billion to US$42.8 billion, compared with its earlier forecast of US$41.2 billion to US$42.1 billion.
The company has benefited from an artificial intelligence-driven hardware upgrade cycle as shoppers replace older computers and smartphones with ones equipped with the latest technology.
Best Buy also raised its forecast for annual earnings per share to US$6.70 to US$6.90 on an adjusted basis, compared with the US$6.30 to US$6.60 estimated earlier.
The company’s shares, which have gained about 30 per cent so far this year, were down about 3 per cent in choppy premarket trading.
(Reporting by Angela Christy in Bengaluru; Editing by Sriraj Kalluvila)
