Hesitant Consumers Hurt Best Buy Results | Global News Avenue

Best Buy (BBYShares fell 8% on Tuesday morning after the electronics retailer missed profit and sales forecasts and slashed guidance as consumers cut back on spending ahead of the crucial holiday shopping season.

Best Buy announces third quarter financial results for fiscal year 2025 Earnings per share (EPS) $1.26, with revenue down more than 3% year over year to $9.45 billion. Analysts polled by Visible Alpha expected the company to be valued at $1.29 and $9.63 billion, respectively.

Comparable store sales down 2.9%. Domestic comparable store sales fell 2.8%, dragged down by a slowdown in purchases of appliances, home theater and gaming products. International comparable store sales decreased 3.7% and online comparable store sales decreased 1.0%.

CEO attributes performance to ‘continued macro uncertainty, customers awaiting deals’

Chief Executive Officer (CEO) Corie Barry said “ongoing macro uncertainty, customers waiting for deals and sales activity and distractions in the run-up to the election, particularly in the discretionary category, resulted in lower than expected demand in the second quarter” Half of the quarter.

The company expects full-year earnings per share of $6.10 to $6.25, compared with its previous forecast of $6.10 to $6.35. Revenue is expected to be $41.1 billion to $41.5 billion, compared with the previous range of $41.3 billion to $41.9 billion. Same-store sales are expected to fall 2.5% to 3.5%, down from the previous decline of 1.5% to 3.0%.

Despite today’s plunge, Best Buy shares are still up 9% year to date.