Consumers are turning away from discretionary goods, lowering the power of Best Buy’s (BBY) third-quarter results.
Shares of the electronics retailer are lower in premarket trading, down more than 4%, after the company reported mixed results with net sales below expectations.
Consumers are under pressure from headwinds such as rising interest rates, student loan repayments, credit card debt and declining savings.
Net sales came in at $9.76 billion, less than the $9.90 billion expected. Sales of appliances, consumer electronics, computing and mobile phones all fell, but the company saw some strength in its entertainment products.
International sales saw a decline of 1.90%, stronger than expected.
In the release, Best Buy CEO Corrie Barry said: “These results demonstrate our continued strong operational execution as we navigate the near-term sales pressure our industry has experienced for several quarters. »
She added: “In the more recent macroeconomic environment, consumer demand has been even more uneven and difficult to predict. »
The distribution of winnings:
Here’s what Best Buy reported, compared to Bloomberg consensus data:
Adjusted EPS: $1.29 versus $1.18 expected
Net sales: $9.76 billion versus $9.90 expected
Total sales in the United States: -7.30% versus -5.98% expected
Appliances: -15.30% versus -8.20% expected
Entertainment: 20.60% versus 5.67% expected
Consumer electronics: -9.50% versus -6.00% expected
Computers and mobile telephony: -8.30 versus -6.40% expected
International: -1.90% versus -4.19% expected
The company also lowered its guidance for fiscal 2023. Full-year revenue is now expected to be between $43.1 billion and $43.7 billion, compared to prior guidance of $43.8 billion. at $44.5 billion.
Sales are expected to decline 6.0% to 7.5%, compared to a previously expected decline of 4.5% to 6.0%.
CEO Barry said in the release that the company is looking forward to the holiday season with a focus on a different consumer.
“(Best Buy is) prepared for a very bargain-oriented customer, with promotions and offers for all budgets, new shopping experiences, an expanded product assortment and fast and free fulfillment,” a- she declared.
This story is breaking and is being updated.
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email him at email@example.com.
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