Best Buy says its fourth-quarter sales exceeded expectations, with computing leading growth and other categories improving.

However, while the latest figures beat estimates, they were still lower than the previous year.

Domestic revenue declined to $12.72 billion from $13.41 billion, while international revenue dipped slightly to $1.23 billion from $1.24 billion.

CEO Corie Barry said the company plans to strengthen its position in omnichannel network and scale incremental profit streams, including Best Buy Marketplace and Best Buy Ads.

“We are excited to build on that momentum to bring our strategy to life while we continue to navigate uncertain circumstances,” Barry said.

GlobalData MD Neil Saunders said Best Buy’s overall sales decline of 4.8 per cent is mainly the result of a shorter trading period. 

“As such, the comparable sales number provides a clearer view of underlying performance, he continued.

“Here, the good news is that having declined since the third quarter of 2022, domestic comparable sales have finally nudged back into the black.”

However, Saunders said the “not quite so good news” is that growth came in at a very shallow 0.2 per cent, which does not nearly make up for the erosion of recent years.

“Best Buy needs to create more of a destination status around its stores,” he suggested. “This should involve classes, showcasing new technology, and many more partnerships with technology vendors.”

Saunders said that the company’s strategies are not compelling enough and pull customers with needs rather than those who want to browse. 

“As a brand, Best Buy is well regarded. It is also trusted,” he remarked. 

“Our sense is, however, that the company has failed to add the icing to the cake to create a compelling and well-differentiated proposition.”