Best Buy missed an analyst estimate for third-quarter sales and earnings, reporting comparable sales slipped amid consumer uncertainty and a focus on deals.
Net earnings were $273 million, or $1.26 per diluted share, versus $263 million, or $1.21 per diluted share, in the year-previous quarter, Best Buy reported. Adjusted for one-time events, earnings per diluted share were $1.26 versus $1.29 in the year-before period.
Best Buy came up shy of a Zacks Investment Research analyst consensus earnings estimate of $1.30 and a revenue estimate of $9.63 billion
Comparable sales were down 2.9% for the company and 2.8% in the domestic operation in the quarter year over year. Revenue was $9.45 billion versus $9.76 billion in the year-earlier period. Domestic revenue was $8.7 billion versus $9 billion in the year-past quarter. Operating income was $350 million versus $354 million in the year-prior period, Best Buy noted, while adjusted operating income was $351 million versus $369 million.
In announcing the financial results, Corie Barry, Best Buy CEO, said, “In the third quarter, our teams delivered an in-line non-GAAP operating income rate on sales that were a little softer than expected. During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand.
“In the first few weeks of Q4, as holiday sales have begun and the election is behind us, we have seen customer demand increase again,” Barry continued. ” We are excited and feel well-positioned for the holiday season with compelling deals, inspirational in-store and digital merchandising and competitive fulfillment options. We continue to see a consumer who is seeking value and sales events, and one who is also willing to spend on high price-point products when they need to or when there is new, compelling technology. Thus, we are balancing our optimism in both the industry and our unique positioning with a pragmatic approach to likely uneven customer behavior going forward.”
