(Reuters) -Best Buy on Wednesday forecast a bigger drop in annual sales then previously estimated, in another sign that consumers are feeling the pressure of decades-high inflation and curbing spending on discretionary items such as computers and TVs.
Shares in the electronics retailer fell 5% in extended trading.
The warning comes close on the heels of a similar announcement from retail bellwether Walmart Inc, which on Monday slashed its profit forecast, saying soaring gas and food prices dented demand for discretionary items.
“As we contemplate the back half of the year, based on the ongoing uncertainty as it relates to macro-economic conditions and consumer electronics demand, it is difficult to assess the duration of the softer sales environment and the impact on our business,” Best Buy Chief Financial Officer Matt Bilunas said.
The company said it now expects full-year comparable sales to fall in a range around 11%, compared to its previous outlook of a 3% to 6% decline.
(Reporting by Deborah Sophia in Bengaluru)
