People walk past a Best Buy store in Manhattan, New York on November 22, 2021.
Andrew Kelly | Reuters
Best buy lowered its full-year sales outlook on Tuesday, as the company navigates a period of colder demand and prepares to welcome price-conscious holiday shoppers.
The consumer electronics retailer beat Wall Street’s quarterly profit expectations but missed revenue.
Best Buy said it now expects revenue between $43.1 billion and $43.7 billion for the fiscal year, down from its previous range of between $43.8 billion and $44.5 billion. of dollars. The retailer said it expects comparable sales to decline between 6% and 7.5%, down from its previous forecast of a decline of 4.5% to 6%.
It also lowered the upper range of its earnings forecast, saying it expects adjusted earnings per share to be between $6 and $6.30 from $6 to $6.40.
CEO Corie Barry said in a press release that Best Buy expects consumer electronics sales to decline this year. But amid an economic backdrop marked by high inflation and the Federal Reserve’s campaign to cut spending, she said consumer demand “has been even more uneven and difficult to predict.”
She said the retailer was ready for the holiday season and “prepared for a very bargain-focused customer with promotions and offers to suit all budgets”.
Here’s how the company performed for the fiscal third quarter ended Oct. 28, compared to what Wall Street expected, based on a survey of analysts conducted by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.29 adjusted versus $1.18 expected
- Revenue: $9.76 billion versus $9.90 billion expected
Best Buy said its net income for the three-month period fell to $263 million, or $1.21 per share, from $277 million, or $1.22 per share, during the period of last year. Income fell compared to $10.59 billion a year earlier.
Best Buy shares closed at $68.11 on Monday. Year to date, the company’s shares have fallen about 15%, underperforming the S&P 500’s 18% gains during the same period.
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