Best Buy Co., Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Best Buy second quarter fiscal 2027 earnings call. At this time, all participants are in a listen-only mode. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. As a reminder, this call is being recorded for playback and will be available by approximately 1 p.m. Eastern Time today. If you need assistance on the call at any time, Please press star zero and an operator will assist you. I will now turn the conference call over to Molly O'Brien, Head of Investor Relations. Molly, please go ahead.

Thank you and good morning, everyone. Joining me on the call today are Corie Barry, our CEO, and Jason Bonfig, our Chief Customer Product and Fulfillment Officer and incoming CEO. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release available on our website, investors.bestbuy.com. Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may address the financial condition, business initiatives, growth plans, investments, and expected performance of the company and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's current earnings release and our most recent Form 10-K and subsequent Form 10-Qs for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Earlier this month, we announced the appointment of our new CFO, Anne Braman. As Anne started at the company just eight days ago, Corie will cover the financial portion of today's call. And now I will turn the call over to Corie.

Good morning, everyone, and thank you for joining us. This is my last earnings call as Best Buy CEO. And before I discuss our results, I want to express my sincere gratitude to the incredible employees of this company who have made the past 27 years truly extraordinary. It has been a privilege to work alongside such talented, dedicated, and customer focused teams throughout my career. I also want to thank all of you on the call. Over the years, I have greatly valued the opportunity to share our progress, discuss our strategy, and build relationships with many of you in the investment community. Your engagement, insights, and support have meant a great deal to me. It has been a joy to transition with Jason, not just seamlessly, but in a way that continues to accelerate progress. And as I hand the baton to Jason and the leadership team, I do so with absolute confidence. They are experienced and talented leaders guiding a business that is well positioned for continued success. Thank you for being part of this journey, and I wish you all the very best. On to our second quarter results. Today, we are very pleased to report better than expected Q2 results. Our comparable sales grew 4.1% versus last year, with positive comps across almost all our major product categories. We also drove operating income rate expansion and earnings per share growth. Specifically, on revenue of $9.8 billion, we delivered an adjusted operating income rate of 4.3%. and adjusted diluted earnings per share of $1.47, which was up 15% versus last year. I want to extend my appreciation to our employees across the company for their commitment to our customers and for the strong execution of our strategy. We are successfully strengthening our position in retail as a leading omnichannel destination for technology while at the same time scaling new profit streams that we expect to provide considerable benefit over time. Our Best Buy ads and marketplace initiatives continued to hit their performance targets and contributed to our gross profit rate expansion. From a category perspective, computing growth led the way this quarter. We delivered our 10th consecutive quarter of positive comparable sales driven by a combination of customer need to upgrade and replace and product innovation. Our Q2 computing sales continued to be supported by the strong performance of our Best Buy business team which increased its sales by 21% versus last year. We are excited to announce that Home Theater was the second biggest weighted comp driver this quarter with the highest sales growth since Q2 of fiscal 22. We drove market share gains throughout the quarter and our performance was broad-based across product tiers and price points. We saw continued strong growth in the group of newer and emerging categories including AI glasses, trading cards, and health rings. Sales for this group of categories in Q2 more than doubled versus last year. In mobile phones, we delivered our sixth consecutive quarter of growth, driven by our expanded partnerships and in-store operating model improvements with large carriers. In major appliances, we continued the strength we saw in May and delivered slight sales growth for the full quarter. This material improvement in growth trends compared to prior quarters was due to the combination of our investments in pricing, Marketing, Delivery Speed, and Product Availability. As expected, we saw comparable sales decline in our traditional gaming category as we lapped the successful launch of the Switch 2 in June of last year. Our Q2 results did not materially change our existing commentary on the customer. Consistent with the past several quarters, we see a customer who is still spending but is value-focused and attracted to sales moments. Importantly, While customers continue to be thoughtful about big ticket purchases, they are willing to spend on high price point products when they need to or when there is technology innovation. We are pleased with our first half result and our momentum as we enter the second half of the year, and we are raising our annual financial guidance. I am beyond excited to turn the call over to Jason to provide further details on our performance and key business updates.