Best Buy said it expects same store sales in the current and next quarter to fall as consumers spend less on consumer electronics (and wait for new smartphone models to come out).
The company said consumers have less discretionary income due to rising food and gas prices.
“We are expecting to see ongoing industry-wide sales declines in many of the consumer electronics categories in which we compete,” Chief Financial Officer Sharon McCollam said in a statement, as reported by Reuters.
Best Buy’s same store sales fell almost 2 percent for the recent fiscal quarter ended May 3 and are expected to fall in the low single digits for the second and third quarters.
However, the chain reported a positive net income of $461 million for the quarter compared to a loss of $81 million, a year earlier, beating analysts’ estimates.
Regarding consumers delaying purchases of new smartphones, Apple is expected to announce a new iPhone this August or September. Also Amazon is expected to enter the smartphone market in September.
See also Forbes’ story Best Buy Beats on Bottom Line, But Dismal Outlook Sends Shares on Bumpy Ride
So what can we learn from this Best Buy story?
How about this?
WE TEND TO GET WHAT WE EXPECT!
Norman Vincent Peale
We EXPECT all our businesses to have a positive impact on our top and bottom lines. Profitability is very important to us or we wouldn’t be in this business.
Don’t EXPECT business to slow down and it won’t!
Do EXPECT business to be good and it will!
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