Best Buy cut its forecast for the coming months due to slower demand, citing inflation.
Same store sales are expected to fall 11 percent for its 12 month period (versus the 3 to 6 percent drop it predicted in May). And for the quarter that ends this week, the chain expects a 13 percent decline in comparable sales from last year.
Best Buy CEO Corie Barry said, “As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened even further, leading to Q2 financial results below the expectations we shared in May.”
But she said the chain’s sales are still higher than they were before the pandemic.
Best Buy joins other retailers including Walmart and Target in warning of lower sales or profits.
But the retailer said its inventory levels should be flat with the year ago period by the end of July.
It includes the “best” products in certain categories including home theater and audio, computing, headphones, wearables, fitness, cell phones, cameras, smart home, small appliances and more. Based on the Monroe Best Buy website, no car audio products are shown.
To purchase an item, shoppers scan the QR code on any of the products on display. Then a salesman retrieves the item from the back of the store, said The Verge.