Best Buy Co. (BBY) posted better-than-expected third quarter earnings Tuesday, while lifting its full-year forecast for same-store sales, as the electronics retailer expects a near-term boost from Black Friday and Cyber Monday and a stronger holiday shopping season.
Best Buy said non-GAAP earnings for the three months ending on October 29 came in at $1.38 per share, down 33.7% from the same period last year but well ahead of the Street consensus forecast of $1.03 per share. Group revenues, Best Buy said, fell 11.1% from last year to $10.3587 billion, but again topped analysts' forecasts of a $10.31 billion tally. Same-store sales, Best Buy said, tumbled 10.4% from last year
Looking into the 2023 financial year, which ends in February, Best Buy same store sales are likely to fall by around 10%, firmly inside its prior forecast of 'slightly more' than 12%, with an operating income rate that its just ahead of 4%.
"Throughout the quarter, we were 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 growth," said CEO Corie Barrie. As a result, we delivered Q3 results ahead of our expectations coming into the quarter.”
“The holiday shopping season has begun, and now, more than ever, our customers are looking to bring joy back into their celebrations,” she added. “We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe looks more similar to historical holiday periods, with customer shopping activity concentrated on Black Friday week, Cyber Monday and the two weeks leading up to December 25."
Best Buy shares were marked 12.78% higher Tuesday to close at $79.88 each, a move that trims the stock's year-to-date decline to around 21.8%.
Get Action Alerts PLUS + Quant Ratings investing insights for one low price.
- Action Alerts PLUS: Unlock portfolio guidance, access to portfolio managers, and market analysis every trading day.
- Quant Ratings: Get stock ratings, key financial metrics, and ratings upgrades and downgrades for your stock analysis.
