© Reuters. FILE PHOTO: A person enters a Best Buy store in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly
(Reuters) -Electronics retailer Best Buy Co Inc (NYSE:) lowered its full-year sales and profit forecasts on Tuesday, as red-hot inflation saps consumers’ spending power.
However, Best Buy shares jumped 8% in premarket trading after the company beat estimates for first-quarter revenue.
Its stock fell over 16% last week as retail behemoths Walmart (NYSE:) Inc and Target Corp (NYSE:) said surging prices of everything from toothpaste to gas was forcing consumers to prioritize household essentials over discretionary items such as electronics.
Best Buy said it was expecting full-year comparable sales to fall 3% to 6%, compared with its previous forecast of a 1% to 4% drop.
It expects fiscal 2023 adjusted earnings per share of $8.40 to $9, compared with its previous forecast of $8.85 to $9.15.
Total revenue fell to $10.65 billion from $11.64 billion in the first quarter ended April 30, but beat expectations of about $10.41 billion, according to IBES data from Refinitiv.
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