Sales of AI-powered computers led to better-than-expected results at Best Buy

There were finally some bright spots for Best Buy this summer.

While electronics retailer Best Buy’s sales continued to decline and have been on a downward trend for nearly three years, the company saw more buyers of tablets and computers as laptops with built-in artificial intelligence hit the market.

Comparable domestic sales of tablets and computers rose 6 percent in May, June and July compared with the same period last year, said Corie Barry, CEO of the Richfield-based electronics chain.

Overall, comparable sales fell 2.3 percent, but were better than management and analysts had expected, as were quarterly revenues of $9.3 billion. A leaner Best Buy generated $291 million, or $1.34 per share, up 7 percent from a year earlier, showing profitability progress that will likely reassure investors that the company and the electronics industry are on the road to stability.

“With our market position, competent sales staff and compelling merchandising, we have benefited from demand driven by customers’ desire to replace or modernize their products combined with new innovations,” Barry said in a statement.

In recent months, there had been optimism that Best Buy’s worst days might be behind the company. In the spring, after Best Buy also reported sales declines that were not as bad as expected, shares posted their biggest one-day price increase since March 2020.

Much of the stock’s rally was based on investors’ hopes that AI-powered laptops would entice people to buy electronics again. In June, Best Buy became the largest U.S. seller of Microsoft’s new AI-powered Copilot+ laptops. With more than 40 models, Best Buy has the largest assortment of Copilot+ PCs in the country and is the exclusive retailer for about 40% of them. The day the Copilot+ PCs hit stores, Best Buy shares rose to their highest price in a year.

“We see a consumer who values ​​value and special offers and who is also willing to spend money on high-priced products when needed or when there are new, compelling technologies,” Barry said.