Best Buy on Tuesday surpassed Wall Street’s expectations for quarterly earnings, as inflation-dented demand for pricey consumer electronics came in better than feared.
The consumer electronics retailer, which had cut its forecast this summer, reiterated its outlook for the holiday quarter. It raised its full-year forecast to reflect the beat, saying it expects comparable sales to decline about 10%.
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Shares of the company rose more than 9% 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 expected
- Revenue: $10.59 billion vs. $10.31 billion expected
While 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.
On a call with investors, CEO Corie Barry said sales declined across most of Best Buy’s product categories — with the largest decrease in computing and home theater. However, she said, compared to the same quarter in 2019, its computing revenue is 23% higher and its appliances revenue remains 37% higher.
She said the retailer “saw relatively consistent behavior from our purchasing customers” in the quarter, even as consumers faced high prices at the grocery store and gas station. But she added shoppers have a lot of interest in sales events.
“Across consumers we can also see that savings are being drawn down and credit usage is going up,” she said. “And value clearly…
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