BBY daily

Shares of Best Buy are having their best day since 2020 after reporting strong earnings. The company raised its fiscal-year guidance and now expects to see full-year adjusted earnings per share in the range of
$6.10 to $6.35, up from a prior range of $5.75 to $6.20.

It wasn’t all good news for the economy though as the company lowered the top end of its guidance ranges for both full-year revenue and comparable sales. Comp sales declined 2.3% in the quarter with weakness in appliances, home theater and gaming, partly offset by computing and tablets.

Here are some notable comments on the consumer from the conference call:

Best Buy CEO notes consumer environment remains “unpredictable and uneven”
Company sees “resilient consumer so far” but expects potential “unsettled” behavior heading into holiday season
Consumers remain “deal focused” and attracted to “predictable sales moments”
Many product categories like appliances and TVs “continued to be very promotional”
Best Buy observes consumers willing to spend on high-priced items when needed or for compelling new technology
Company doesn’t see signals of major changes in customer behavior that would make them “increasingly cautious”
Macro factors like inflation, spending on experiences vs. goods, and stagnant housing market continue to pressure consumer electronics industry
Some early signs of easing inflation pressures, though housing remains a concern
Spending on experiences has remained “relatively sticky” but showing some early signs of pulling back