Best Buy's Q3 earnings fall short of estimates, with comparable sales declining.

From Nasdaq: 2024-11-26 18:38:00

Best Buy Co., Inc. reported third-quarter fiscal 2025 results with revenues and earnings missing estimates. Both top and bottom lines declined year over year, leading to a 2.6% drop in stock value. However, the company maintained its adjusted operating margin view. Over the past six months, the company has seen a 32.7% gain.

Adjusted earnings per share fell to $1.26, below the estimated $1.30. Enterprise revenues dropped 3.2% year over year, missing the consensus estimate. Enterprise comparable sales declined by 2.9%. Gross profit slightly decreased, while the gross margin expanded by 60 basis points.

In the Domestic segment, revenues fell by 3.3% due to a comparable sales decrease of 2.8%. The International segment saw a 1.6% revenue decline. Best Buy ended the quarter with cash and cash equivalents of $643 million, long-term debt of $1.1 billion, and total equity of $3.1 billion.

For fiscal 2025, Best Buy revised its revenue outlook to $41.1-$41.5 billion with a comparable sales decline of 2.5-3.5%. Adjusted operating margin is expected to be 4.1-4.2%. Fourth-quarter fiscal 2025 forecasts include flat to 3% decline in comparable sales and an adjusted operating margin of 4.6-4.8%.

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Read more at Nasdaq: Best Buy’s Q3 Earnings Miss Estimates, Comparable Sales Dip 2.9% Y/Y