Shares of Best Buy Co. Inc. BBY dropped 1.6% in premarket trading Thursday, after the consumer electronics retailer reported fiscal fourth-quarter profit and revenue that beat expectations but provided a downbeat full-year outlook as a slowing economy pressures consumers. Net income for the quarter to Jan. 28 fell to $495 million, or $2.23 a share, from $626 million, or $2.62 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.61 beat the FactSet consensus of $2.10. Revenue fell 10.0% to $14.735 billion, just above the FactSet consensus of $14.721 billion, but same-store sales fell 9.3% to miss expectations of a 9.2% decline. For fiscal 2024, the company expects adjusted EPS of $5.70 to $6.50, revenue of $43.8 billion to $45.2 billion and a same-store sales decline of 3.0% to 6.0%. Those were all below the FactSet consensus for EPS of $6.72, revenue of $45.69 billion and a same-store sales decline of 1.7%. “As we enter FY24, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers,” said Chief Financial Officer Matt Bilunas. “As a result, our outlook assumes comparable sales decline 3% to 6% for the year, with the most sales pressure in the first quarter, as year-over-year comparisons ease through the year.” The stock has lost 4.7% over the past three months through Wednesday while the S&P 500 SPX slipped 3.0%.
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