Free Trial

Best Buy reports lower 4Q sales and profits as shoppers remain cautious

People are silhouetted against the sky at dawn as they attend a sale at a Best Buy store Friday, Nov. 25, 2022, in Overland Park, Kan. Best Buy reported lower fourth-quarter sales and net income, Thursday, Feb. 29, 2024, as shoppers remain cautious about spending on gadgets. (AP Photo/Charlie Riedel, File)

NEW YORK (AP) — Best Buy reported on Thursday a drop in fourth-quarter sales and profits as shoppers remain cautious about spending on consumer electronics.

Results at the nation's largest consumer electronics chain's were below Wall Street views, but sales beat analysts' expectations. Best Buy also issued guidance for annual sales and profits that were in line with Wall Street views.

Shares rose more than 3% in premarket trading.

The job market has remained resilient, but Americans are facing higher prices on many necessities like rent and certain foods, even as the inflation rate is easing overall. And it's still costing more to take out loans for appliances, cars and houses, or to use a credit card. As a result, consumers have become cautious about spending.

That scenario marks a big difference from Best Buy’s sales during the depths of the pandemic, which were fueled by oversized spending from shoppers who splurged on gadgets to help them work from home or help their children with virtual learning. Government stimulus checks fueled a lot of that spending as well.

Best Buy, based in Minneapolis, has said the current economic environment makes consumer electronic sales uneven and difficult to predict. Still, the latest quarter showed an improvement in spending on gadgets.

Best Buy reported net income of $460 million, or $2.12 per share, in the quarter ended Feb. 3. That compares with a profit of $495 million, or $2.23 per share, in the year-ago period. Adjusted per share results were $2.12, below the $2.52 per share that analysts were expecting, according to FactSet.

Sales were $14.65 billion for the quarter, down from the $14.73 billion a year ago. Analysts were expecting $14.56 billion.

Comparable sales — business from its stores and its online channels — fell 4.8% in the quarter, an improvement from the 6.9% drop in the previous quarter and better than what analysts had anticipated.

Best Buy said it expects that sales for the current fiscal year to be in the range of $41.3 billion to $42.6 billion. Analysts are expecting $42.3 billion, according to FactSet.

Best Buy anticipates earnings per share for the year to range from $5.75 per share to $6.20 per share. Analysts were expecting $6.16 per share.

Should you invest $1,000 in Best Buy right now?

Before you consider Best Buy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Best Buy wasn't on the list.

While Best Buy currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The 10 Best AI Stocks to Own in 2025 Cover

Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Why Energy Stocks Are Poised for Explosive Growth in 2025
From Landfills to Profits: Opal Fuels CEO Shares How the Company Turns Trash into Cash
The Real Reason Tesla Stock Is Soaring – and Why Tech Expert Says It Won’t Stop

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines