The consumer electronics giant has reported lower first-quarter sales and profits and lowered its full-year forecast citing softer demand.
Best Buy noted that, as shared at its investor update in March, it expected its current fiscal year financial results to be softer than last year as it lacks stimulus and other government support, the CE industry cycles, the last two years of unusually strong demand and continued investments in its future. It also planned for increased promotional activity and higher supply chain expenses.
“Macro conditions worsened since we provided our guidance in early March which resulted in our sales being slightly lower than our expectations,” CEO Corie Barry said in a statement. “Those trends have continued into Q2 and, as a result, we are revising our sales and profitability expectations for the year.”
On a media call, Barry said that, similar to other retailers, Best Buy is “seeing some increasing signals of concern” as consumers feel pressure from rising prices and higher mortgage rates. Consumers are also spending more on experiences, such as vacations, than they did during the pandemic.
The company’s net income fell to $341M, or $1.49 per share, for the quarter ended 30 April, down from $595M, or $2.32 per share, a year earlier. Adjusted earnings were $1.57 per share, missing the $1.61 analysts had expected.
