Best Buy Q3 results released! Revenue and net profit dropped sharply!

It is learned that on November 22, Best Buy announced its third-quarter results ending October 29, 2022. The financial report shows that the company's revenue this quarter was US$10.59 billion, a year-on-year decrease of 11%; net profit was US$277 million, a year-on-year decrease of 44.5%.

"This year's promotional environment is much more intense than last year as consumers are more price-conscious," Best Buy CEO Corie Barry said in a statement. "However, we are confident that we can respond to the weakening consumer demand."

Best Buy saw sales declines in almost all categories in the third quarter, with computer and home theater products seeing the biggest declines, as inflation soared and consumer buying confidence faltered.

On a positive note, Best Buy ended the third quarter with $7.3 billion in merchandise inventory, down 14.7% from last year. (At the end of the second quarter, inventory was down 6% from a year earlier.) On the other hand, the company's adjusted earnings per share of $1.38 in the third quarter were above the market's expectation of $1.03, thanks to progress in controlling costs.

Best Buy also reiterated its 2022 performance guidance, expecting comparable sales in the fourth quarter to fall by about 10%, and adjusted operating profit margin to be higher than the previous estimate of 4%. Full-year adjusted operating income as a percentage of sales will be "slightly higher" than the previous forecast of 4%; comparable sales will fall by 10%, slightly better than the previous forecast of 11%.

Editor ✎ Nicole/

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