Best Buy Co Inc (NYSE:BBY) has reported fourth-quarter sales and earnings that beat expectations but guided for 2024 sales that fell below Street estimates as the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers.
Shares of the specialty retailer traded 2.3% lower at $81.04 by noon on Thursday.
Sales for the quarter to January 29, 2023, declined 10% to $14.7 billion. On a comparable basis, they were down 9.3%, slightly ahead of Wall Street expectations. The company reported non-GAAP diluted 4Q earnings per share of $2.61, down from $2.73 a year earlier, but above the $2.11 expected by the Street.
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“Throughout 4Q and FY23, we remained committed to balancing our near-term response to current conditions and managing well what is in our control, while also advancing our strategic initiatives and investing in areas important for our long-term performance,” Best Buy CEO Corie Barry said in a statement.
The company it will “continue to adjust” as the macro and industry backdrop will continue to be pressured during its 2024 financial year, impacting the consumer electronics industry.
It has guided investors to expect FY24 revenue of $43.8 billion to $45.2 billion, with comparable sales declining by 3% to 6% from FY23.
“During FY24, we expect to expand our gross profit rate approximately 40 to 70 basis points versus the past year as we evolve our membership program and realize benefits from our cost optimization efforts,” Best Buy chief financial officer Matt Bilunas added.
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