Electronics dealer Best Buy (NYSE:BBY) on Tuesday surpassed Wall Street’s quarterly sales expectations, but tempered its outlook for the rest of the year as it feels the lull of post-pandemic spending on kitchen appliances, computer monitors and other electronics.
CEO Corie Barry said the company still anticipates this year will be “the low point in tech demand,” before sales bounce back.
Earnings per share registered at $1.22 adjusted, as opposed to the expected $1.06, on revenue of $9.58 billion vs. $9.52 billion expected.
Best Buy is seeing a reversion to pre-pandemic sales levels, as consumers return to more typical spending patterns and feel pressure on their budgets because of inflation. Similar to Home Depot and Lowe’s, Best Buy had outsized gains during COVID, fueled by big purchases that people don’t frequently repeat.
Over the past year, the consumer electronics retailer has felt the sting of inflation and consumers’ shift back to spending on experiences. It is lapping a year-ago period when it paused share buybacks and cut jobs at stores across the country after slashing its forecast. (The company resumed buybacks late last year.)
The retailer narrowed its full-year outlook. It said it now expects revenue to range from $43.8 billion to $44.5 billion. It had previously anticipated between $43.8 billion to $45.2 billion. For comparable sales, it expects a decline of 4.5% to 6% instead of its prior guidance of between 3% to 6%.
BBY shares sprang up $3.59, or 4.9%, to $77.66.
