People walk past a Best Buy store in Manhattan, New York City, November 22, 2021.
Andrew Kelly | Reuters
Best Buy surpassed Wall Street’s revenue and earnings expectations for the holiday quarter on Thursday, even as the retailer navigated through a period of tepid consumer electronics demand and guided to a softer year ahead.
For this fiscal year, Best Buy anticipates revenue will range from $41.3 billion to $42.6 billion. That would mark a drop from the most recently ended fiscal year, when full-year revenue totaled $43.45 billion. It said comparable sales will range from flat to a 3% decline.
In a news release on Thursday, CEO Corie Barry said Best Buy expects the coming year to be one “of increasing industry sales stabilization.”
She said the company is “focused on sharpening our customer experiences and industry positioning.”
Here’s what the consumer electronics retailer reported for its fiscal fourth quarter of 2024 compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $2.72, adjusted vs. $2.52 expected
- Revenue: $14.65 billion vs. $14.56 billion expected
Best Buy has been in a period of slower sales in part due to the strength of its sales during the pandemic. Like home improvement companies, Best Buy saw outsized spending as shoppers were stuck at home. Plus, many items that the retailer sells like laptops, refrigerators and home theater systems tend to be pricier and less frequent purchases.
The retailer has cited other challenges, too: Shoppers have been choosier about making big purchases while dealing with inflation-driven higher prices of food and more. Plus, they’ve returned to splitting their dollars between services and goods after pandemic years of little activity.
In the three-month period that ended Feb. 3, Best Buy’s net income fell to $460 million, or $2.12 per share, from $495 million, or $2.23 per share in the year-ago period. Revenue dropped from $14.74 billion a year earlier.
As of Wednesday’s close, Best Buy’s shares are up nearly 2% so far this year. The company has underperformed the approximately 6% gains of the S&P 500 during that period. Shares of Best Buy closed at $79.68 on Wednesday, bringing the company’s market value to $17.16 billion.
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