Best Buy's Q2 revenue fell 7.2%, and it lowered its full-year performance guidance

It is learned that on Tuesday (August 29), Best Buy, an American consumer electronics retailer, announced second-quarter results that exceeded expectations, but the company lowered the upper limit of its full-year revenue guidance due to the expected decrease in consumer demand for kitchen appliances, computer monitors and other electronic products after the epidemic.

The financial report shows that in the quarter ending July 20, Best Buy's revenue was US$9.58 billion, a year-on-year decrease of 7.2%, but higher than the expected US$9.52 billion. Net profit fell to US$274 million from US$306 million in the same period last year. Adjusted earnings per share were US$1.22, lower than US$1.54 in the same period last year, but higher than the market expectation of US$1.06.

Best Buy's U.S. revenue was $8.89 billion, down 7.1% from the same period last year, and same-store sales fell 6.3% as consumers bought fewer appliances, home theater products and cell phones.

Best Buy CEO Corrie Barry said: "While our financial results were better than expected, the consumer electronics industry remains challenging at this time, with lower consumer demand and macroeconomic headwinds being the primary factors."

Corrie Barry also said the company still expects this year to be a "low point in demand for technology products" before sales rebound. She said: "Next year, the consumer electronics industry should stabilize and possibly grow, driven by natural upgrade and replacement cycles and the normalization of technology innovation."

Looking ahead, the retailer lowered its full-year outlook. Best Buy expects revenue in 2024 to be around $43.8 billion to $44.5 billion, down from its previous forecast of $43.8 billion to $45.2 billion. Same-store sales for the full year are expected to fall 4.5% to 6%, compared with a previous forecast of a 3% to 6% decline. The company raised its adjusted earnings per share forecast to $6.00 to $6.40 from $5.70 to $6.50.

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