Best Buy sales drop as inflation hits consumer electronics

Best Buy reported a smaller-than-expected drop in quarterly comparable sales on Tuesday.

The retailer sales dropped by about 13% in the fiscal second quarter, as inflation-weary shoppers are still impacting electronic sales.

Sales declined in almost all product categories, with the biggest drops in computing and home theater.

“We are clearly operating in an uneven sales environment,” CEO Corie Barry said in a statement. “We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth.”  

The consumer electronics retailer quarterly net income fell to $306 million, from $734 million a year earlier. On an adjusted basis, the company earned $1.54 per share, beating analysts’ estimates of $1.27 per share.

Best Buy had cut the forecast in late July, saying it expects weaker demand for consumer electronics. The retailer projects same-store sales to drop by about 11% for the 12-month period ending in January.

Chief Financial Officer Matt Bilunas said some shoppers are trying to stretch the budget trading down to lower-priced items or timing purchases for sales events, she told investors on an earnings call.