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August 29, 2023 : On Tuesday, Best Buy Co. Inc. (BBY) reported fiscal second-quarter earnings and revenue that topped analysts’ expectations, but the electronics retailer lowered its sales outlook for the full year.
The Richfield, Minnesota-based company said it earned $274 million, or $1.25 per share, in the quarter, up from $244 million, or $1.13 per share, a year earlier. Revenue rose to $9.58 billion from $10.33 billion.
Analysts on average expected earnings of $1.18 per share on revenue of $9.63 billion, according to Refinitiv.
Best Buy expects revenue of $43.8 billion to $44.5 billion for the full year, down from its previous forecast of $43.8 billion to $45.2 billion. The company cited a “softer sales environment” for the revision.
However, Best Buy raised its guidance for adjusted earnings per share to $6 to $6.40 from $5.70 to $6.50.
“We entered the year expecting our fiscal 2023 financial results to be softer than last year as we lap government stimulus support and unusually strong consumer electronics industry demand while we continue to invest in our future,” said Best Buy’s CEO Corie Barry. “As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened even further, leading to Q2 financial results below the expectations we shared in May.”
Barry said Best Buy is “proactively managing the day-to-day operations while maintaining our focus on our long-term strategy and growth initiatives.”
The company said it is continuing to invest in its omnichannel capabilities, including its website and mobile app, as well as its in-store experience. Best Buy is also expanding its product assortment and services, such as its Geek Squad repair and installation services.
Best Buy’s shares were down about 3% in after-hours trading.
