Best Buy's Q3 revenue fell 7.8%, and it lowered its full-year performance guidance

It is learned that recently, Best Buy, the US consumer electronics retail giant, announced its third-quarter financial results as of September 30. This quarter, Best Buy's profits exceeded expectations, but its revenue performance was poor.

According to the financial report, Best Buy had a net profit of $263 million and earnings per share of $1.21 in the quarter ended October 30, compared with $277 million and $1.22 per share in the same period last year. The company's adjusted earnings per share were $1.29, higher than the $1.19 expected by analysts.

Best Buy's total revenue fell 7.8% from $10.587 billion to $9.756 billion, below the expected $9.897 billion. Revenue in the U.S. was $9.00 billion, down 8.2% year-on-year.

The company's same-store sales fell 6.9% from a year ago, including a 7.3% drop in the U.S. as consumers bought fewer appliances, computers, home theaters and cell phones.

In the third quarter of 2023, Best Buy's online sales in the United States were US$2.75 billion, a year-on-year decrease of 9.3%. In addition, the number of people registered for Best Buy's loyalty membership program increased by 35%. As of the end of the quarter, the retail giant had a total of 6.6 million members.

Best Buy lowered its full-year sales forecast as demand cools and consumers face rising interest rates, student loan repayments, credit card debt and dwindling savings.

Best Buy said it expects revenue for the fiscal year ending this year to be between $43.1 billion and $43.7 billion, down from a previous range of $43.8 billion to $44.5 billion. Comparable sales will fall 6% to 7.5%, down from a previous forecast of 4.5% to 6%.

The retailer also cut the upper end of its profit guidance, saying it expects adjusted earnings per share to be between $6 and $6.30 instead of $6 to $6.40.

Best Buy CEO Corie Barry said in a statement that the company had expected relatively weak sales of consumer electronics this year. However, as the Federal Reserve continues to fight inflation by raising interest rates, consumer demand has become more uneven and less predictable.

Corie Barry added that Best Buy is well prepared for the upcoming holiday season with promotions and deals for every budget for bargain-conscious shoppers.

Editor ✎ Nicole/

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