People enter a Best Buy store at a mall in Brooklyn in New York City on August 29, 2023.
Spencer Platt |
Best buy raised its earnings forecast for the fiscal yr on Thursday after beating earnings and sales expectations for the last quarter.
The retailer now expects full-year adjusted earnings per share within the range of $6.10 to $6.35, down from a previous range of $5.75 to $6.20. However, the corporate lowered the upper limits of its forecasts for full-year revenue and comparable sales.
“As we look ahead to the second half of the year, we expect our industry to continue to show increasing stabilization,” said Matt Bilunas, Best Buy CFO, in the corporate’s press release.
Best Buy shares rose 6% in premarket trading Thursday.
Here’s how the buyer electronics retailer performed within the period ending August 3 in comparison with Wall Street expectations, based on a survey of analysts conducted by LSEG:
- Earnings per share: USD 1.34 vs. USD 1.16 expected
- Revenue: $9.29 billion in comparison with expected $9.24 billion
The company reported net income for the quarter of $291 million, or $1.34 per share, in comparison with $274 million, or $1.25 per share, a yr earlier.
Net sales fell to $9.29 billion within the quarter from $9.58 billion within the year-ago period.
Comparable sales decreased 2.3% within the quarter, in comparison with a decline of 6.2% within the prior yr.
Best Buy is currently within the midst of a turnaround attempt in response to a two-year sales slump. Consumer goods retailers of all types are grappling with weaker consumer demand, driven by unusually high sales through the Covid pandemic and consumer hesitancy as a consequence of high inflation.
As the long-awaited alternative cycle for tech products purchased through the pandemic slowly begins, the retailer is hoping to money in through marketing and operations initiatives. Best Buy announced in July that it might deploy trained sales teams in three key areas of its stores – computers, appliances and residential theater – and launch a marketing campaign that features YouTube videos to generate consumer interest.
The company also said it was banking on a wave of latest tech gadgets, similar to a set of latest iPads, which Apple in May and laptops with artificial intelligence, touted by Microsoft.
During the corporate’s fiscal first-quarter earnings call in May, Best Buy executives said they expected “sequential improvement” in sales trends and increasing industry stabilization in 2024.
Sales in the buyer electronics sector are on a downward trend and are expected to say no by an extra two percent by 2024, in response to a recent study by market research company Circana.
