Best Buy Misses on Sales and Lowers Guidance. Consumer Demand Is ‘Uneven.’

Best Buy
Best Buy
stock fell in premarket trading Tuesday after revenue fell short of estimates and the company trimmed its fiscal-year guidance.

Best Buy
(ticker: BBY) posted adjusted earnings of $1.29 a share in the third quarter, topping forecasts for $1.19, according to FactSet. Revenue was $9.8 billion, down 7.8% year-over-year. Wall Street was predicting it would be $9.9 billion.

Same-store sales fell 6.9% this quarter, a wider miss than calls for a 5.7% decline.

The company lowered its guidance for fiscal 2024. Best Buy now sees revenue ranging between $43.1 billion and $43.7 billion. Past guidance called for revenue to fall between $43.8 billion and $44.5 billion. Best Buy also lowered the high end of its earnings per share guidance, which is now between $6 and $6.30, down from $6 to $6.40.

Same-store sales for the full year will fall between 6% and 7.5%, compared with prior guidance for a 4.5% to 6% decline.

Fourth-quarter same-store sales will decline by 3% to 7%. Analysts had predicted they would be down by 1.1%.

“In the more recent macro environment, consumer demand has been even more uneven and difficult to predict,” said Corie Barry, Best Buy CEO. “Based on the sales trends in the third quarter and so far in November, we believe it is prudent to lower our annual revenue outlook.”

Shares of Best Buy fell 2% to $66.77 in premarket trading. The stock is down 15% this year.

Write to Sabrina Escobar at [email protected]

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