© Reuters. FILE PHOTO: People walk past a Best Buy store in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) – Best Buy Co Inc (NYSE:) reported a smaller-than-expected drop in quarterly comparable sales on Tuesday as steep discounts helped soften the blow to electronics demand from rampant inflation.
The retailer’s shares rose about 4% in premarket trading.
Companies from television panel manufacturer LG Display (NYSE:) Co to PlayStation maker Sony Corp (TYO:) have warned of weakening demand in recent weeks as soaring prices of everyday goods brought an end to the COVID-driven boom in home electronics demand. That has forced Best Buy, which cuts its full-year sales forecast in late July, to offer steep discounts on products to get them off shelves.
The company’s comparable sales decreased 12.1% in the second quarter ended July 30, compared with analysts’ estimates of a 12.6% fall, according to IBES data from Refinitiv.
Best Buy said it expects sales to decline slightly more than 12.1% in the third quarter.
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