Best Buy sounds the alarm ahead of holiday season… and reveals just what shoppers are waiting for

Best Buy has reported another quarterly sales decline ahead of the holidays.

The nation’s largest consumer electronics chain lowered its annual sales and profit outlook as Americans continue to ditch appliances and gadgets to focus on essentials.

Best Buy shares fell 4 percent following the news.

CEO Corie Barry confirmed this in an email revenue calling that the retailer saw “softer than expected sales” in September and October.

Barry added that Best Buy customers were waiting for big sales and were distracted by the 2024 presidential election.

While she added that demand has increased in recent weeks, the company has still tempered expectations for the final holiday quarter of the year.

Barry told reporters that the company is facing a shorter holiday shopping season this year, and that the company is waiting for a wave of customers looking to replace old appliances and upgrade to new, more advanced devices. CNBC reported.

During the Covid-19 pandemic, consumers rushed to buy new laptops and devices but have pulled back in the years since, leading to a sales decline in the sector.

Barry added that the company expects the sales peak to be higher during times like Black Friday and Cyber ​​Monday, but the troughs before and after will be lower, the outlet said.

The latest earnings report came eight months after Best Buy permanently closed 10 U.S. locations.

Best Buy’s full-year sales forecasts were not in line with Wall Street’s quarterly revenue expectations.

Analysts expected the electronics retailer to bring in revenue of $9.63 billion.

However, the earnings report shows that the company earned just $9.45 billion during the thirteen-week third quarter, which ended on November 2.

The results also indicated that Best Buy’s net sales fell to $9.45 billion, compared to the $9.76 billion it earned at this time last year.

Other notable slumps include a 2.8 percent comparable sales decline in the U.S. and a 1 percent year-over-year decline in U.S. digital sales.

Despite the declines, Best Buy’s net income rose to $273 million, compared to $263 million last year.

One reason behind the comparable sales decline, according to Best Buy, is low sales of appliances, home theaters and gaming consoles.

However, the growth in popularity of computers and tablets somewhat offset the sales of these products.

Some of these products include the latest versions of Apple iPads and iPhones and laptops with Microsoft AI.

Best Buy is also hopeful that the holidays will help the company emerge from the latest financial crisis.

“We are excited and feel well positioned for the holiday season with attractive deals, inspiring in-store and digital merchandising and competitive fulfillment options,” said Barry.

“We continue to see a consumer who is looking for value and sales events, and one who is also willing to spend money on high-price products when necessary or when there is new, compelling technology.”

The CEO added that Best Buy “balances industry optimism and its unique positioning with a pragmatic approach.”

The company will also be on the lookout for newly elected President Donald Trump after he promised to increase tariffs on imports from China, Mexico and Canada.

Best Buy explained that the highest import volumes for goods sold by the retailer come from China, with Mexico being the second highest.

The costs of the possible 10 percent tariff increase on Chinese goods and a 25 percent increase on imports from Mexico would impact Best Buy, its suppliers and customers.

“These are goods that people need, and higher prices don’t help,” Barry said.

It comes after Target said last week it expected a quiet holiday shopping seasonwhich has some retail investors in turmoil.

The retailer forecast that sales will be flat in the final quarter of the year, and management lowered its profit forecast from the previous quarter.

Best Buy started its early Black Friday deals on November 21, cutting prices on more than 400 products.

The prices of several products were reduced by at least $100, and the cost of some items was reduced by almost $1,000.

The electronic retailer also offered doorbusters on November 22 and will do so again on Black Friday.