- Best Buy missed revenue expectations and slashed its full-year guidance on a pullback in consumer spending.
- The electronics retailer reduced its outlook for earnings, revenue, and comparable store sales, citing "uneven" consumer demand.
- CEO Corie Barry indicated Best Buy will need to offer promotions during the holiday shopping season because customers have become "deal driven."
Best Buy (BBY) shares slumped as the electronics retailer’s sales declined and it cut its guidance on a slowdown in consumer spending.
Best Buy reported third quarter fiscal 2024 revenue dropped 7.8% from a year ago to $9.76 billion, short of forecasts. Profit of $1.29 per share exceeded estimates.
The retailer indicated it expects revenue to be between $4.31 billion and $4.37 billion for the full year, with comparable store sales falling 6% to 7.5%. That compares to its earlier outlook of revenue of $4.38 billion to $4.45 billion, and comparable store sales sliding 4.5% to 6%. It anticipates earnings per share (EPS) of $6 to $6.20 versus the previous $6 to $6.30.
CEO Corie Barry said in the more recent macroeconomic environment, “consumer demand has been more uneven and difficult to predict.” She added that in the coming key holiday shopping season, Best Buy is preparing for “a customer who is very deal driven,” and that the retailer will need to provide “promotions and deals for all budgets.”
Shares of Best Buy fell close to 2% in early trading Tuesday and have lost about 20% of their value this year.