Photo: Best Buy
Best Buy has downwardly revised its second quarter and full-year forecast, but the news is not all bad, according to its CEO Corie Barry.
The consumer electronics chain said that it now expects its second-quarter same-store sales to decline 13 percent compared to the 19.6 percent gain it posted at the same time last year. Best Buy said its second-quarter comps would come in around 7.5 percent higher than its second-quarter pre-pandemic results in 2019.
The retailer was never expecting to top last year’s second-quarter results that received a boost from federal stimulus payments and unusually high demand for the products it sells as more Americans spent time at home for school and work as a result of COVID-19.
Best Buy is now expecting same-store sales to fall around 11 percent for the year. This compares to its previous guidance of a decline between three and six percent. The retailer now sees its operating income coming in at around four percent for the year, down from 5.2 to 5.4 percent before. The company said it would “continue to actively assess further actions to manage profitability” going forward.
The chain grows a list of brands and retailers that have downwardly revised forecasts for the year including Adidas, Gap, Kohl’s, Target and Walmart, CNBC reports.
“While our financial results are not where we expected them to be this year, our sales continue to be higher than they were pre-pandemic,” said Ms. Barry. “We remain a strong, profitable company with a unique position in an extremely innovative, vibrant industry that is more relevant than ever in the lives of consumers. We are confident in our team and our strategy and excited about the opportunities ahead.”
Best Buy has continued to move into new categories including health and outdoor living products as it seeks to connect consumers and technology in all aspects of daily life.
The retailer is also testing new store concepts including a digital-first, small box store in Monroe, NC. The showroom format features a curated selection of “best-on-category products” in audio and home theater, cameras, cellphones, computing, small appliances, smart home tech and wearables.
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