People enter a Best Buy store at a mall in Brooklyn on August 29, 2023 in New York City.
Spencer Platt Getty Images
Best Buy It raised its fiscal year earnings guidance on Thursday after beating earnings and revenue expectations for the fourth quarter.
The retailer now expects to see full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previous range of $5.75 to $6.20. However, the company lowered the top end of its guidance ranges for both full-year revenue and comparable sales.
“As we look ahead to the back half of the year, we expect our industry to continue to show increasing stability,” Matt Belonas, Best Buy’s chief financial officer, said in the company’s press release.
Best Buy shares jumped 6% in premarket trading Thursday.
Here’s how the consumer electronics retailer did it. Period ending August 3 Compared to what Wall Street was expecting, based on a poll of analysts conducted by LSEG:
- Earnings per share: $1.34 vs $1.34 expected $1.16
- profit: $9.29 billion vs. $9.29 billion expected $9.24 billion
The company reported net income for the quarter of $291 million, or $1.34 per share, compared with $274 million, or $1.25 per share, a year earlier.
Net sales in the quarter fell to $9.29 billion from $9.58 billion in the same period a year earlier.
Comparable sales fell 2.3% during the quarter, compared to a 6.2% decline a year earlier.
Best Buy has been in the midst of a turnaround in response to a two-year sales slump. Discretionary retailers across the board have been struggling with weak consumer demand following unusually high sales throughout the Covid pandemic and as consumers have retreated due to rising inflation.
As the long-awaited replacement cycle for pandemic-era tech purchases begins to unfold, the retailer is hoping to capitalize on marketing and operational initiatives. Best Buy said in July it would add trained sales teams to three key parts of its stores — computing, appliances and home theater — and launch a marketing campaign that includes YouTube videos to drum up consumer interest.
The company also said it was betting on a wave of new tech devices debuting, such as the new iPad lineup launched by Apple. apple In May, AI-powered laptops were promoted. Microsoft.
During the company’s fiscal first-quarter earnings call in May, Best Buy executives said they expect sales trends to improve sequentially and the industry to stabilize further in 2024.
Consumer electronics sales are on a downward trend and are expected to decline another 2% in 2024, according to the latest research from market research firm Circana.
