By Davit Kirakosyan
Best Buy Co., Inc. (NYSE:BBY) shares dropped more than 3% after-hours Wednesday following the company’s announced business updates on Q2 financial performance and fiscal 2023 outlook.
According to Corie Barry, Best Buy CEO, the company’s Q2 results are below the estimates they shared in May due to continuous high inflation, deteriorating consumer sentiment, and softened customer demand within the consumer electronics industry.
The company expects Q2/23 comparable sales to decline approximately 13% (vs. 19.6% comparable sales growth in Q2/22), with revenue approximately 7.5% higher than pre-pandemic Q2/20.
For the full 2023-year, the company expects a comparable sales decline of approximately 11% (vs. previous 3%-6% decline estimate) and a non-GAAP operating income rate of approximately 4% (vs. previous 5.2%-5.4% estimate).