A Best Buy store is seen in Niles, Illinois near Chicago, September 23, 2013. REUTERS/Jim Young/File Photo
Best Buy (BBY.N) said on Tuesday it expects a steeper drop in full-year comparable sales, anticipating shoppers to remain selective in purchases of big-ticket items like electronics and home appliances despite elevated holiday season promotions.
The company’s shares, down nearly 15% this year, fell 2.4% in premarket trading after a miss on third-quarter revenue estimates.
Elevated interest rates, a spending shift to services from goods and a resumption in student loan repayments have further strained appetite for electronics and home office products after a pandemic-led surge.
“In the more recent macro environment, consumer demand has been even more uneven and difficult to predict,” CEO Corie Barry said in a statement.
The top U.S. electronics retailer now expects annual comparable sales to decline in the range of 6.0% to 7.5%, compared with its prior range of a 4.5% to 6.0% drop.
Total revenue fell to $9.76 billion in the third quarter ended Oct. 28 from about $10.59 billion a year earlier and compared with LSEG estimates of $9.90 billion.
Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila
