Best Buy CEO: Consumer “resilient” but “unpredictable” heading into holiday season

Shares of Best Buy are having their best day since 2020 after reporting strong earnings. The company raised its fiscal-year guidance and now expects to see full-year adjusted earnings per share in the range of
$6.10 to $6.35, up from a prior range of $5.75 to $6.20.

It wasn’t all good news for the economy though as the company lowered the top end of its guidance ranges for both full-year revenue and comparable sales. Comp sales declined 2.3% in the quarter with weakness in appliances, home theater and gaming, partly offset by computing and tablets.

Here are some notable comments on the consumer from the conference call:

• Best Buy CEO notes consumer environment remains “unpredictable and uneven”
• Company sees “resilient consumer so far” but expects potential “unsettled” behavior heading into holiday season
• Consumers remain “deal focused” and attracted to “predictable sales moments”
• Many product categories like appliances and TVs “continued to be very promotional”
• Best Buy observes consumers willing to spend on high-priced items when needed or for compelling new technology
• Company doesn’t see signals of major changes in customer behavior that would make them “increasingly cautious”
• Macro factors like inflation, spending on experiences vs. goods, and stagnant housing market continue to pressure consumer electronics industry
• Some early signs of easing inflation pressures, though housing remains a concern
• Spending on experiences has remained “relatively sticky” but showing some early signs of pulling back

This article was written by Adam Button at www.forexlive.com.