On Tuesday, Best Buy Co., Inc
Enterprise comparable sales fell 2.9%. Quarterly sales decreased to $9.45 billion from $9.76 billion a year ago, missing the analyst consensus of $9.63 billion.
Domestic revenue of $8.70 billion decreased 3.3% compared to last year, primarily due to a comparable sales decline of 2.8%.
From a merchandising perspective, the largest drivers of the comparable sales decline on a weighted basis were appliances, home theater, and gaming, partially offset by growth in the computing, tablets, and services categories.
Domestic online revenue of $2.73 billion decreased 1.0% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 31.4% versus 30.6% last year.
"In the third quarter, our teams delivered an in-line non-GAAP operating income rate on sales that were a little softer than expected," said Corie Barry, Best Buy CEO.
"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."
International revenue of $748 million decreased by 1.6%, driven by a comparable sales decline of 3.7% and the negative impact of foreign exchange rates, partially offset by revenue from Best Buy Express locations opened in Canada during FY25.
Outlook: Best Buy trimmed its fiscal year 2025 revenue outlook from $41.3 billion - $41.9 billion to $41.1 billion - $41.5 billion compared to the consensus of $41.59 billion.
The company revised the adjusted EPS outlook from $6.10 - $6.35 to $6.10 - $6.25, compared to the consensus of $6.25.
Comparable sales are expected to decline between 3.5% and 2.5%, compared to prior guidance for a decline between 3.0% and 1.5%.
Best Buy expects fourth-quarter comparable sales to be flat to down 3% and an adjusted operating income rate of 4.6% - 4.8%
Price Action: BBY stock is down 7.23% at $86.30 during the premarket session at last check Tuesday.
