Best Buy announced on November 26, 2024, that it has cut its full-year sales forecast after missing quarterly revenue expectations. The consumer electronics retailer reported a decline in sales, attributing the downturn to softer demand and ongoing macroeconomic uncertainties.
- Best Buy cuts full-year sales forecast.
- Comparable sales expected to decline further.
- CEO cites softer-than-expected consumer demand.
- Digital sales decreased 1% year-over-year.
- New tech launches failed to boost sales.
- Best Buy shares up 19% this year.
Best Buy’s revised forecast reflects challenges in the consumer electronics market, where the company has struggled to maintain sales momentum. For the fiscal third quarter, Best Buy’s net income increased slightly to $273 million, or $1.26 per share, compared to $263 million, or $1.21 per share, a year earlier. However, net sales decreased to $9.45 billion from $9.76 billion in the same quarter last year.
Key statistics from the earnings report include:
- Earnings per share: $1.26 adjusted vs. $1.29 expected
- Revenue: $9.45 billion vs. $9.63 billion expected
Despite the introduction of new products, including Apple’s latest iPads and AI-enabled laptops, Best Buy reported a 2.9% decline in comparable sales. The company noted that weakness in appliance and gaming sales contributed to this decline, although growth was seen in computing and services. Digital sales also fell by 1% year over year in the U.S.
As Best Buy navigates these challenges, CEO Corie Barry expressed cautious optimism about the upcoming holiday season, suggesting that consumer behavior may stabilize. The company is anticipating a surge in shoppers looking to upgrade their devices, particularly after a two-year slump in the consumer electronics sector.
In summary, Best Buy’s adjustments to its sales forecast highlight the ongoing challenges faced by the retailer in a shifting economic landscape. With a focus on upcoming holiday sales, the company remains hopeful for a rebound in consumer demand.
