Best Buy has beaten internal and analysts’ profit estimates, after warning investors of pressure from falling consumer electronics demands.
Adjusted earnings during the fiscal second quarter (ended July) fell to A$2.25 a share, down from the same quarter in 2021, but well ahead of Wall Street predictions of just A$1.97 a share.
Sales fell 13 per cent for the quarter, while ‘enterprise comparable sales’ fell 12.1 per cent, up from estimations of a 13.1 per cent decline.
Adjusted operating income amounted to 4.1 per cent of revenue, ahead of Best Buy’s own forecast in the range of 3.7 per cent.
“We are clearly operating in an uneven sales environment,” CEO Corie Barry said.
“We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth.”
Best Buy has also retracted its forecast for fiscal 2025, which it announced earlier this year.
“The current macro backdrop has changed in ways that we and many others were not expecting,” Barry said, saying he will update “once we begin to experience a more stable operating environment.”
Best Buy shares rose 5.2 per cent after releasing the results.
