Gaming Performance

Q1 described pressure with hopes for improvement ( " " " ), Q4 highlighted share gains and preparation for new launches ( " " ), while Q3 noted declines and softness in the category ( " ).

Q2 reported strong growth driven by the Switch 2 launch along with robust sales in gaming peripherals and accessories ( " " " " ).

Improved sentiment thanks to innovative product launches boosting growth, despite previous mixed performance across periods ( " " ).

Product Innovation

Q1 focused on computing upgrades and AI integration ( " " ), Q4 emphasized computing growth, AI features and technology upgrades ( " " " ), and Q3 highlighted early AI integration, modular merchandising and emerging tech brands ( " " " ).

Q2 highlighted record computing growth, enhanced AI-enabled devices (e.g., AI glasses), and collaborative gaming merchandising innovations ( " " " ).

Evolving positively with stronger emphasis on AI and AR integration while maintaining consistent commitment to technological innovation ( " " ).

Tariff and Cost Pressures

Q1 discussed tariff mitigation strategies and lower effective tariff pass‐through ( " " " ), Q4 noted tariff impacts translating into a 1‑point comparable sales drag and pricing uncertainties ( " " " ), and Q3 detailed supply chain complexity and cost sharing ( " " ).

Q2 explained that although the blended effective tariff rate increased to about 16%, effective cost adjustments are well mitigated by vendor efforts ( " " " ).

Increasing complexity but with improved mitigation measures; a shift from earlier concerns toward managed cost pressures ( " " ).

Vendor Support and Supply Chain Management

Q1 emphasized collaborative vendor partnerships for manufacturing flexibility and cost negotiations ( " " " ), Q4 discussed dedicated labor investments and training programs ( " " ), and Q3 highlighted vendor labor investment and use of AI tools in supply chain ( " " " ).

Q2 showcased increased vendor investment in labor, enhanced physical showcase updates, and diversified sourcing strategies to reduce tariff exposure ( " " ).

Consistently positive with growing collaboration and diversification efforts, strengthening supply chain efficiency across periods ( " " ).

Promotional Strategies and Demand Management

Q1 noted that consumers were deal‑focused with strategic pricing partnerships ( " " " ), Q4 stressed holiday promotions and targeted campaigns ( " " ), while Q3 detailed value‑oriented promotions and challenges in stimulating demand outside sales events ( " " " ).

Q2 outlined a compelling promotional calendar with increased breadth and depth of promotions, integrated with vendor partnerships and tariff-mitigation measures ( " ).

Sustained focus on value with enhancements to promotions that align with consumer behavior amid inflation; adaptive strategies remain consistent ( " ).

Digital and Marketplace Initiatives

Q1 mentioned enhanced search experiences, a mid‑year marketplace launch with strong seller interest ( " " " ), Q4 highlighted advancements in digital sales and future storefront initiatives ( " " " ), and Q3 emphasized app enhancements and marketplace learnings from Canada ( " " ).

Q2 emphasized marketplace expansion, integration with Best Buy Ads, and digital initiatives (e.g., data-driven sourcing and real‑time tracking) to enhance online experience ( " " " ).

Accelerated digital momentum with further investments in marketplace and ads platforms—emerging as key new revenue drivers ( " " ).

Operational Efficiencies and Cost Controls

Q1 detailed deployment of source‑to‑pay technology and automation efforts ( " " ), Q4 focused on cost reductions via AI-enhanced customer service and transparency tools ( " " ), and Q3 described AI utilization, reverse supply chain improvements, and disciplined SG&A management ( " " " ).

Q2 reported the rollout of a new data‑driven sourcing solution powering online orders, carrier strategy improvements with FedEx, and automation in distribution centers for cost savings ( " " " ).

Continuous improvement with increasing reliance on digital/automated systems, driving further cost controls and operational efficiencies ( " " ).

Weakness in Core Product Categories

Q1 highlighted declines in home theater, appliances, drones, and value-focused TVs ( " " ), Q4 noted declines in appliances, home theater, and gaming partly due to promotional pressures ( " " " ), while Q3 reported declines in appliances, home theater, and gaming amid inconsistent customer demand ( " " ).

Q2 identified ongoing weaknesses in home theater, appliances, tablets (lapped strong prior sales), and drones, with plans for assortment and placement adjustments ( " " " ).

Persistent challenges across core categories that require strategic adjustments; sentiment remains cautious despite targeted remediation efforts ( " " ).

Best Buy Health Challenges

Q1 mentioned significant restructuring charges and profitability challenges in segments (in-home solutions and aging care) ( " " ), Q4 reported a large goodwill impairment and anticipated headwinds on gross profit ( " " " ), while Q3 had no discussion.

Q2 indicated a reduction in Best Buy Health expenses as part of narrowing focus, partially offsetting other SG&A increases ( " ).

Ongoing issues with consistent challenges; some cost reductions in Q2 suggest cautious management though long-term profitability remains in question ( " " ).

Store Format Expansion

Q1 described plans for in‑store experience updates tied to new launches and training enhancements ( " " ), Q4 detailed store closures, openings of smaller format stores, and focused merchandising updates ( " ), and Q3 discussed experimentation with outlet formats and smaller, community-focused stores ( " " ).

Q2 did not provide explicit new store format expansion details but mentioned enhancements in in‑store experiences to support product launches ( " " ).

Moderate shift away from explicit format expansion toward focusing on enhancing in‑store experience and modernizing existing formats ( " " ).

Dependence on Specific Growth Drivers

Q1 stressed reliance on computing, mobile, AI, and upcoming marketplace/advertising initiatives ( " " " ), Q4 emphasized omnichannel improvements, new profit streams, and strong service revenue as key drivers ( " " " ), Q3 highlighted computing/tablets, memberships, and multimodal promotions driving growth ( " " " ).

Q2 underlined dependency on technological innovation (e.g., Switch 2), category-specific growth, vendor partnerships and the emerging marketplace and ads business ( " " " ).

Consistent dependency on innovation, digital expansion, and strategic partnerships with an increasing focus on digital and marketplace initiatives as future drivers ( " " ).