A Best Buy store is seen in Los Angeles, California, United States, March 13, 2017.
Lucy Nicholson | Reuters
best buy Tuesday beat Wall Street’s quarterly earnings expectations as demand for big-ticket consumer electronics held up despite inflation.
The consumer electronics retailer reiterated its outlook for the holiday quarter. It raised its full-year guidance to reflect the pace, saying it expects comparable sales to fall about 10%.
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Shares of the company rose more than 6% in premarket trading on Tuesday.
Here’s how the retailer did for the third fiscal quarter ended October 29 compared to what Wall Street was anticipating, according to a survey of Refinitiv analysts:
- Earnings per share: $1.38 adjusted vs $1.03 forecast
- Revenue: $10.59 billion vs $10.31 billion expected
Net profit for the three-month period decreased at $277 million, or $1.22 per share, from $499 million, or $2 per share, a year earlier.
Best Buy is seeing a more uncertain retail environment this holiday season. Some inflation-hit consumers are opting out of discretionary items and spending more money on necessities and experiences. The company joined other retailers in trimming its outlook this summer. He said at the time that he expected comparable store sales to fall about 11% for the 12 months to January.
A month after Best Buy warned of slowing sales, it cut jobs across the country.
Best Buy shares are down about 30% so far this year, underperforming the S&P 500 index. Shares closed Monday at $70.83, down nearly 2%. The company’s market value is $15.95 billion.
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