Business

Best Buy scales back sales outlook as results top expectations

A shopper pushes a cart with a TV in front of a Best Buy store in Chicago, Illinois, November 25, 2022.
Jim Vondruska | Reuters

Best Buy on Tuesday surpassed Wall Street’s quarterly sales expectations, but tempered expectations for the rest of the year as it feels the lull of post-pandemic spending on home appliances, computer monitors and other electronics.

Here’s how the company did for the fiscal second quarter, compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.22 adjusted vs. $1.06 expected
  • Revenue: $9.58 billion vs. $9.52 billion expected

Best Buy’s net income for the three-month period that ended July 29 fell to $274 million, or $1.25 per share, from $306 million, or $1.35 per share, a year earlier.

Net sales in the quarter dropped from $10.33 billion in the year-ago period.

The retailer narrowed its full-year outlook. It said it now expects revenue to range from $43.8 billion to $44.5 billion. It had previously anticipated between $43.8 billion to $45.2 billion. For comparable sales, it expects a decline of 4.5% to 6% instead of its prior guidance of between 3% to 6%.

It slightly raised its profit expectations, however. It said it expects adjusted earnings per share of $6 to $6.40 instead of prior guidance of $5.70 to $6.50

Shares of Best Buy closed on Monday at $74.07, bringing the company’s market value to $16.16 billion. So far this year, the company’s stock is down nearly 8%. That contrasts with the S&P 500’s approximately 15% gains during the same period.

This is a developing story. Please check back for updates.

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