Best Buy Co Inc (NYSE:BBY) shares dropped 2% pre-market after the electronics retailer cut guidance because of softer sales in the third quarter.
Full-year comparable sales are now guided to decline 2.5% to 3.5%, compared to its previous forecast of a 1.5% to 3% drop.
Total revenue for the year to end-February 2025 was reduced to a range of $41.1 billion to $41.5 billion, down slightly from $41.3 billion to $41.9 billion previously expected.
In the third quarter, underlying profits were in line with guidance despite sales that were "a little softer than expected," said CEO Corie Barry.
“During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand. In the first few weeks of Q4, as holiday sales have begun and the election is behind us, we have seen customer demand increase again.”
For the final quarter of the fiscal year, comparable sales are expected to be between flat and down 3% compared to a year earlier.
However, Barry noted that in the first few weeks of Q4 demand has picked up and stated: “We are excited and feel well-positioned for the holiday season.”
The company maintained its full-year non-GAAP operating income rate projection at 4.1% to 4.2%, with Q4 rates expected between 4.6% and 4.8%.