People walk into the Best Buy store at Brooklyn Mall on August 29, 2023 in New York City.
Spencer Pratt | Getty Images
best buy On Thursday, it raised its profit guidance for the current fiscal year after beating earnings and revenue estimates for the latest quarter.
The retailer now expects full-year adjusted earnings per share of $6.10 to $6.35, up from the previous range of $5.75 to $6.20. However, the company lowered the high end of its guidance range for full-year revenue and comparable sales.
“Looking ahead to the second half of the year, we expect our industry to continue to demonstrate increasing stability,” Best Buy Chief Financial Officer Matt Bilunas said in a company news release.
Best Buy shares rose 6% in premarket trading Thursday.
Here’s how the consumer electronics retailer’s performance compared to Wall Street expectations as of Aug. 3, according to an LSEG survey of analysts:
- Earnings per share: $1.34 vs expected $1.16
- income: $9.29 billion vs. $9.24 billion expected
The company reported net income of $291 million, or $1.34 a share, for the quarter, compared with $274 million, or $1.25 a share, a year earlier.
Net sales fell to $9.29 billion in the quarter from $9.58 billion in the same period last year.
Comparable sales fell 2.3% in the quarter, compared with a 6.2% decline in the same period last year.
Best Buy has been try to turn the situation around in response to two years of declining sales. Discretionary retailers across the board are grappling with weak consumer demand as sales surge during the coronavirus pandemic and consumers shrink from high inflation.
As the long-awaited replacement cycle of pandemic-era technology purchases begins to creep in, the retailer is looking to capitalize on marketing and operational measures. Best Buy said in July it would add highly trained sales teams to three key sections of its stores – computers, appliances and home theater – and launch a marketing campaign that includes YouTube videos to capture consumers’ attention. interest.
The company also stated bet In a wave of debuts of new technology products, e.g. A range of new iPads sponsor apple May and AI-enabled laptops touted go through Microsoft.
While in the company Profit in the first fiscal quarter Best Buy executives said on a conference call in May that they expected sales trends to “gradually improve” in 2024 and industry stability to increase.
The latest research from market research company Circana shows that consumer electronics sales have been on a downward trend and are expected to drop another 2% in 2024.
