Best Buy Cuts Forecast in Glass Half Full Announcement – RetailWire

Jul 28, 2022

Best Buy has scaled back its second quarter and forecasts for the full year, but the news isn’t all bad, according to its CEO Corie Barry.

The consumer electronics chain said it now expects its second-quarter same-store sales to decline 13% from the 19.6% gain it posted in the same period l last year. Best Buy said its second quarter comps would be about 7.5% higher than its pre-pandemic second quarter results in 2019.

The retailer never expected to top last year’s second quarter results which were boosted by federal stimulus payments and unusually high demand for the products it sells as more Americans spend time at home for school and work in the wake of COVID-19.

Best Buy now expects comparable store sales to fall about 11% for the year. This compares to its previous forecast of a decline of between 3 and 6%. The retailer now sees operating profit coming in at around 4% for the year, down from 5.2-5.4% previously. The company said it will “continue to actively evaluate other stocks to manage profitability” going forward.

The chain is expanding on a list of brands and retailers that have lowered their forecasts for the year, including Adidas, Gap, Kohl’s, Target and Walmart, CNBC reports.

“Although our financial results are not where we expected them to be this year, our sales continue to be higher than they were before the pandemic,” Ms. Barry said. “We remain a strong and profitable company with a unique position in a hugely innovative and dynamic industry that is more relevant to consumers’ lives than ever before. We are confident in our team and our strategy and are excited about the opportunities ahead. »

Best Buy continued to move into new categories, including health and live outside products as it seeks to connect consumers and technology in all aspects of daily life.

The banner is also testing new store concepts, including a digital first, small box store in Monroe, North Carolina. The showroom format features a curated selection of “Best Products” in the areas of Home Audio and Theater, Cameras, Cell Phones, Computing, Small Appliances, smart home technology and wearable devices.

DISCUSSION QUESTIONS: Do you see Best Buy as a stronger or weaker retail company today than it was a year ago and before the pandemic? What should and shouldn’t Best Buy be doing as it navigates the second half of 2022?

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“Do you see Best Buy as a stronger or weaker retail company today than it was a year ago and before the pandemic?”

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