In the first quarter, consumers were willing to splurge on higher-priced goods if they felt they needed them or if the innovation was worth the price tag.

Consumers spent more than expected on gaming consoles like the Switch 2, PS5, and Xbox. Plus, sales doubled year over year in new and emerging categories that include items such as AI glasses, 3D printers, collectibles like Pokémon trading cards, and smart rings like the Oura Ring. Higher-priced appliances were under pressure.

”Apple's record March quarter and MacBook Neo demand point to solid contribution while Logitech delivered an encouraging read on peripherals [computer hardware devices], citing a resilient premium US consumer, solid tax refund lift and US gaming sales turning positive in February,” Wedbush analyst Matthew McCartney wrote in a note to clients ahead of earnings.

This report is the first since the company announced CEO Corie Barry will step down from the electronics retailer at the end of the third quarter.

“With this momentum, I believe it is the right time to transition the leadership of Best Buy, and step down as CEO later this year,” she said in the release.

On Oct. 31, Barry will be succeeded by Jason Bonfig, who currently serves as Best Buy's chief customer, product, and fulfillment officer. Barry will stay on as a strategic adviser for six months when Bonfig takes the reins, and Bonfig will replace her on the board.

Bonfig laid out key areas he plans to focus on in the earnings release. Similar to the approaches taken by Walmart (WMT) and Target (TGT), he plans to make Best Buy into a retail, media, advertising, and technology company, as Wall Street applauds Best Buy’s higher-margin businesses, such as its marketplace.