(Reuters) – Best Buy raised its annual profit forecast on Thursday as tighter cost controls help the electronics retailer cushion the impact of higher discounts and promotions across all its categories.

The company’s shares, which have risen about 14 percent so far this year, rose 8 percent in premarket trading.

Best Buy overhauled its membership program last year and cut jobs as part of a restructuring plan to improve margins amid weaker demand at its stores.

The company expects adjusted earnings per share for fiscal 2025 to be in the range of $6.10 to $6.35, compared to previous guidance of $5.75 to $6.20 per share.

The electronics retailer is trying to improve its digital sales and shopping experience by allowing shoppers to order products online and pick them up at physical stores.

“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 new, attractive technologies become available,” said Corie Barry, chief executive officer of Best Buy.

The company also reported a smaller-than-expected decline in comparable sales in the second quarter, which fell 2.3 percent compared to expectations for a 3.2 percent decline, according to LSEG data.

After keeping a tight lid on spending on expensive electronics for several quarters, U.S. consumers were looking to upgrade their laptops and tablets.

Best Buy also benefited over the summer from demand for newer features like Microsoft’s AI-powered Copilot+ PCs.

The company is also offering discounts on smaller gadgets and home appliances as well as televisions to appeal to consumers who are still reluctant to spend due to inflation.

The domestic gross profit ratio increased to 23.5% in the second quarter from 23.1% in the previous year.

(Reporting by Juveria Tabassum; Editing by Pooja Desai)