Best Buy: FY forecasts reduced in line with demand
(CercleFinance.com) - Best Buy announced on Tuesday that it expects its organic sales to decline more sharply than initially forecast for its current fiscal year, due to weaker-than-expected demand.
The US consumer electronics retailer now says it expects its sales to fall by between 2.5% and 3.5% for FY 2024/2025, to end-+January.
By way of comparison, the Minneapolis-based group had previously anticipated a decline in like-for-like sales of between 1.5% and 3%, representing an annual sales target of between $41.3bn and $41.9bn.
Its new projection is now between $41.1bn and $41.5bn.
In Q3, to end-October, Best Buy said its sales contracted by 2.9% to $9.44bn, compared with Wall Street's target of $9.63bn.
While citing lower-than-expected demand to date, Best Buy stresses that, since the beginning of November, it has seen an upturn in demand as the holiday season approaches and the results of the presidential election are known.
The share was still down over 7% on Tuesday morning in pre-market trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The US consumer electronics retailer now says it expects its sales to fall by between 2.5% and 3.5% for FY 2024/2025, to end-+January.
By way of comparison, the Minneapolis-based group had previously anticipated a decline in like-for-like sales of between 1.5% and 3%, representing an annual sales target of between $41.3bn and $41.9bn.
Its new projection is now between $41.1bn and $41.5bn.
In Q3, to end-October, Best Buy said its sales contracted by 2.9% to $9.44bn, compared with Wall Street's target of $9.63bn.
While citing lower-than-expected demand to date, Best Buy stresses that, since the beginning of November, it has seen an upturn in demand as the holiday season approaches and the results of the presidential election are known.
The share was still down over 7% on Tuesday morning in pre-market trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.