Best Buy Co Inc (NYSE:BBY) expects to report a drop in sales for the third quarter as demand weakness for consumer electronics due to inflationary pressures continues to weigh on the retailer.
When it hands down its latest financials before the stock market opens on Tuesday, November 21, Best Buy expects to report a slight quarter-over-quarter improvement in its sales from negative 6.2% in 2Q.
It also forecast an adjusted operating income rate of 3.4%.
Analysts are expecting a greater drop in sales than Best Buy's guidance, forecasting a 6.7% decrease year-over-year to $9.88 billion.
Earnings per share are expected to decline by 13.8% from $1.38 in the year-ago quarter to $1.19.
Investors will also be on the lookout for any potential updates to the company’s full-year fiscal 2024 sales guidance, which was lowered when it reported its 2Q results in late August.
It currently expects revenue of $43.8 billion to $4.5 billion, down from its prior guidance range of $43.8 billion to $45.2 billion.
Comparable sales are expected to decline by 4.5% to 6%, a greater decline than its prior guidance of a 3% to 6% drop.
Best Buy shares traded lower on Thursday, down 3.2% at $66.66 shortly after noon.
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