Best Buy Stock Slides On Q3 Top And Bottom Line Miss -- MarketWatch

MarketWatch · 11/26 12:28

Best Buy Co. Inc. (BBY) shares are down 7% in premarket trades after the retailer's third-quarter sales and earnings came in below analysts' estimates. Best Buy's third-quarter net income was $273 million, or $1.26 a share, down from $263 million, or $1.21 a share in the same period last year. On an adjusted basis Best Buy earned $1.26 a share, below analysts' estimate of $1.30 a share. Third-quarter sales were $9.445 billion, down from $9.756 billion in the prior year's quarter. Analysts surveyed by FactSet were looking for sales of $9.631 billion. In a statement Best Buy CEO Corie Barry said that sales "were a little softer than expected" during the quarter. "During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand," she said, in the statement. "In the first few weeks of Q4, as holiday sales have begun and the election is behind us, we have seen customer demand increase again." Comparable sales declined 2.9%, compared with the FactSet estimate of a 1% decline. Best Buy also updated its full-year guidance and now expects revenue of $41.1 billion to $41.5 billion, compared to its prior guidance of $41.3 billion to $41.9 billion and a comparable sales decline of 3.5% to 2.5%. Previously Best Buy had forecast a comparable sales decline of 3.0% to 1.5%.

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November 26, 2024 07:28 ET (12:28 GMT)