Best Buy sticks to holiday-quarter outlook as electronics demand holds up

by | Nov 22, 2022 | Business

A customer watches as Best Buy employees load his new television into his car during the state’s sales tax free weekend, beginning on Saturday.Erin Clark | Boston Globe | Getty ImagesJPMorgan says these two retailers are its favorite picks into the holiday season22 hours agoShares of the company rose more than 8% in premarket trading Tuesday.Here’s how the retailer did for the three-month period ended Oct. 29 compared with what Wall Street was anticipating, according to a survey of analysts by Refinitiv:Earnings per share: $1.38 adjusted vs. $1.03 expectedRevenue: $10.59 billion vs. $10.31 billion expectedWhile Best Buy’s quarterly results were better than expected, demand is down from the heights of the pandemic, when consumers turned to its stores for home theaters, computer monitors, kitchen appliances and more while working, playing and cooking at home.Net sales for the fiscal third quarter declined by about 11% from $11.91 billion year over year in the third quarter. Net income fell to $277 million, or $1.22 per share, from $499 million, or $2 per share, a year earlier.CEO Corie Barry said holiday shopping patterns are also shifting to a more typical pre-pandemic pattern. In a news release, she said the retailer expects customers to spend more during Black Friday, Cyber Monday and the two weeks leading up to Christmas.Best Buy is staring down a more uncertain sales environment this holiday season. Some inflation-pinched consumers are pulling back on discretionary items and spending more money on necessities and experiences. The company joined other retailers in slashing its outlook this summer. It said at the time that it expects same-store sales to drop by about 11% for the 12-month period ending in January.A month after Best Buy warned of slower sales, it cut jobs across the country.Yet, so far, the company has topped its own expectations.Comparable sales fell by 10.4%, less of a decline than the 12.9% that analysts expected, according to FactSet. The key met …

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