Tue Nov 26 13:10:00 UTC 2024: ## Best Buy Cuts Sales Forecast Amid Softer Consumer Demand

**MINNEAPOLIS, MN –** Best Buy announced Tuesday a cut to its full-year sales forecast, citing softer-than-expected consumer demand. The electronics retailer now projects full-year revenue between $41.1 billion and $41.5 billion, a downward revision from its previous estimate of $41.3 billion to $41.9 billion. Comparable sales are expected to decline by 2.5% to 3.5%, steeper than the previously anticipated 1.5% to 3% drop.

The company’s third-quarter earnings, ending November 2nd, revealed a mixed picture. While net income rose slightly to $273 million ($1.26 per share), net sales dipped to $9.45 billion from $9.76 billion a year earlier. Comparable sales fell by 2.9% overall and 2.8% in the U.S., driven by weaker-than-expected performance in appliances, home theaters, and gaming, partially offset by growth in computing, tablets, and services. Digital sales also experienced a 1% year-over-year decrease.

CEO Corie Barry attributed the shortfall to macroeconomic uncertainty, consumers waiting for sales, and election-related distractions. She noted, however, that demand has shown signs of picking up in the current quarter as holiday shopping gains momentum. Despite the launch of new products like Apple’s latest iPhones and AI-enabled laptops, these weren’t sufficient to boost sales significantly.

Best Buy’s stock fell approximately 3% in premarket trading following the announcement. While shares are still up about 19% year-to-date, this lags behind the S&P 500’s roughly 26% increase. The company is anticipating a resurgence in sales as consumers upgrade their electronics after a period of subdued spending.

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