(Reuters) -Top U.S. electronics retailer Best Buy Co Inc on Thursday joined peers with a cautious annual earnings forecast as uncertainty over the U.S. economy tempers expectations for a recovery in demand for discretionary products.
The company’s shares slipped 1.6%, despite a beat on holiday quarter revenue and profit estimates as steep discounts attracted inflation-weary shoppers to its stores.
“As we enter FY24, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers,” Best Buy’s Chief Financial Officer Matt Bilunas said in a statement.
The company expects fiscal 2024 adjusted earnings per share of $5.70 to $6.50, below analysts’ estimates of $6.71, according to IBES data from Refinitiv.
It forecast full-year comparable sales to fall 3% to 6%, compared to analysts’ estimates of a 1.9% decline.
Walmart, Target Corp and other retailers have also issued conservative forecasts as still high U.S. consumer prices have raised fears that the Federal Reserve could further lift borrowing costs to cool demand.
On an adjusted basis, Best Buy earned $2.61 per share in the fourth quarter ended Jan. 28, beating analysts’ estimates of $2.11, according to IBES data from Refinitiv.
Total revenue fell about 10% to $14.74 billion, but edged past estimates of $14.72 billion.
(Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva and Sriraj Kalluvila)
