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Best Buy cuts full-year sales forecast due to softer demand for consumer electronics

Nov 26, 2024 - cnbc.com
Best Buy has lowered its full-year sales forecast after missing Wall Street's quarterly revenue expectations. Despite the release of new iPhones and AI-enabled laptops, sales did not increase as expected. The company now anticipates full-year revenue to be between $41.1 billion and $41.5 billion, down from the previous estimate of $41.3 billion to $41.9 billion. Comparable sales, which include online sales and sales at stores open for at least 14 months, are expected to decline by between 2.5% and 3.5%.

CEO Corie Barry attributed the lower sales to macroeconomic uncertainty, customers waiting for deals and sales events, and distractions due to the upcoming election. However, she noted that consumer demand has picked up again in the first weeks of the current quarter. Despite the disappointing quarter, Best Buy is optimistic about the potential for new tech products to drive sales in the future.

Key takeaways:

  • Best Buy has cut its full-year sales forecast after missing Wall Street's quarterly revenue expectations, despite the release of new iPhones and AI-enabled laptops.
  • The company now expects full-year revenue to range from $41.1 billion to $41.5 billion, with comparable sales expected to decline by between 2.5% and 3.5%.
  • CEO Corie Barry attributed the softer-than-expected demand to macro uncertainty, customers waiting for deals and sales events, and distractions due to the election.
  • Despite the disappointing quarter, Barry noted that consumer demand has picked up again in the first weeks of the current quarter as holiday sales gain momentum and election concerns ease.
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