Best Buy forecasts profit below estimates as electronics demand weakens

Best Buy Co Inc, the largest retailer of electronics in the United States, joined rivals on Thursday in providing a cautious

year earnings prediction as concerns about the US economy temper hopes for a resurgence in the market for discretionary goods.

The company's shares fell 1.6% despite exceeding expectations for revenue and earnings during

The holiday quarter as significant discounts drew consumers scared of inflation to its stores.

In a statement, Best Buy's Chief Financial Officer Matt Bilunas said, "As we start FY24,

The consumer electronics industry continues to experience the repercussions of the larger macro climate and its impact on customers.

According to IBES data from Refinitiv, the business anticipates fiscal 2024 adjusted earnings per share of $5.70 to $6.50, behind analysts' projections of $6.71.

In contrast to experts' expectations of a 1.9% decline, it predicted that full-year comparable sales would shrink by 3% to 6%.

While U.S. consumer prices remain high, Walmart, Target Corp., and other retailers have also released cautious

projections amid worries that the Federal Reserve may increase borrowing costs further to slow demand.

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