Best Buy (NYSE:BBY) on Thursday watched its shares pop, after the retailer missed Wall Street’s quarterly sales expectations, but stressed higher profits and lower costs as softer demand for consumer electronics continues.
The retailer beat on earnings per share and stuck by its full-year forecast. It expects revenue will range from $41.3 billion to $42.6 billion for the full year. That would mark a drop from the most recently ended fiscal year, when full-year revenue totaled $43.45 billion. It said comparable sales will range from flat to a 3% decline.
In a news release on Thursday, CEO Corie Barry acknowledged “a challenging sales environment” for the consumer electronics category and softer-than-expected sales.
But, she said the company continues “to manage our profitability while at the same time preparing for future growth.”
The company has looked to newer businesses, including its subscription-based membership program. It relaunched My Best Buy as a three-tier program in late June. The lowest tier of the program is free, but the top tier costs $179.99 per year for perks like round-the-clock tech support, up to two years of product protection and 20% off repairs, among other benefits.
The Minneapolis-based retailer has also slashed spending. Earlier this year, Barry said the company would lay off workers and cut costs across the business. She did not specify the number of layoffs, but said Best Buy would invest in areas that could drive growth, like artificial intelligence.
BBY shares leaped $6.65, or 9.2%, to $78.55.
