Best Buy stock tumbles after third quarter results and holiday sales forecast


Best Buy Co Inc. (BBY) – Get the report from Best Buy Co., Inc. posted higher-than-expected third-quarter profits on Tuesday, but expects comparable store sales to decline over the holiday season as supply chain disruptions trickle down to the electronics industry. detail.

Best Buy said non-GAAP earnings for the three months ending October were $ 2.08 per share, an increase of 2 cents from the same period last year and well ahead on Street’s consensus forecast of $ 1.91 per share. The group’s revenues, Best Buy said, were largely flat from a year ago at $ 11.91 billion, but beat analysts’ forecasts of a tally of $ 11.56 billion. Same-store sales, Best Buy said, were up 2% from a year ago, beating Refinitiv’s forecast of a 0.7% decline,

In the last few months of the year, Best Buy raised its revenue forecast to a range of $ 51.8 billion to $ 52.3 billion, a modest increase of $ 300 million from the high end of its previous forecast, and said same-store sales would increase 10.5%. and 11.5%.

Comparable store sales for the fourth quarter, however, were forecast in a range of -2% to + 1%, compared to Refinitiv’s estimate of a 0.1% gain.

“We achieved record results in the third quarter, including 2% nationwide comparable sales in addition to 22.6% last year, as our leaders continued to implement new ways of operating and our people have continued to do amazing things to meet the technological needs of our customers in an informed, timely and practical manner, ”said CEO Corie Barry. “Our omnichannel capabilities and our ability to inspire and support all of technology in a way that no one else can means that we are in a unique position to seize the opportunity in this environment and at the to come up. ”

“More and more people continue to work, play, cook and connect in a sustainable way at home, and as customers return to stores, digital sales were even more than double the levels of. before the pandemic, and phone, chat and door-to-door sales continued to grow, ”she added. “In the third quarter, we achieved our fastest online small parcel shipping times on record as our same day delivery increased 400% and we nearly doubled the percentage of products delivered within one day. compared to last year. “

Best Buy shares were down 9.5% in pre-market trading immediately after the results were released to indicate an opening bell price of $ 124 each.

Last week Foot Locker (Florida) – Get the report from Foot Locker, Inc. closed an impressive week for US retail earnings with higher than expected net income of $ 1.93 per share and revenue of $ 2.19 billion.

Foot Locker’s strong October quarter followed robust updates to Macy’s department store pillars (M) – Get the Macy’s Inc report and Kohl (KSS) – Get the report from Kohl’s Corporation (KSS) earlier this week, as well as a much stronger than expected October retail sales reading.

Macy’s on Thursday posted higher-than-expected third-quarter profit of 76 cents per share, while upping its full-year sales and profit forecast, while Koh’s forecast beat forecast with a net profit of $ 1.65 per share as US department stores follow large retailers with inflation-defying sales gains and outlook for the holiday quarter.

Retail sales in the United States surged for a third consecutive month in October, Commerce Department data said on Tuesday, rising 1.7% to $ 638.2 billion as consumers continue to contend inflationary pressures thanks in part to labor market gains and improved wages.

Inflation continues to loom over the retail sector, however, after consumer price inflation accelerated at the fastest pace in three decades last month, as record prices in the energy and supply chain disruptions took the stock to 6.2%.

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