Best Buy Co Inc (NYSE:BBY) has posted third quarter earnings for 2022 that beat analyst estimates while it raised its full-year guidance for sales, expecting a boost from Black Friday and the upcoming holiday shopping season.
The electronics retail chain said its non-GAAP earnings were US$1.38 per share, down from 3Q 2021, but ahead of Wall Street’s $1.03 per share estimate. Group revenue fell 11.1% from 3Q last year to US$10.59 billion, but beat analyst estimates of $10.3 billion by 2.6%.
Best Buy CFO Matt Bilunas said the company is updating its full-year 2023 outlook to flow through its better-than-expected 3Q results while keeping its 4Q expectations unchanged.
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"We now expect comparable sales to decline approximately 10% and our non-GAAP operating income rate to be slightly higher than 4%," Bilunas said in a statement.
Profit for the third quarter declined to US$277 million from $499 million in the year-ago quarter. The company said lower margin rates and higher supply chain costs affected its gross profit rate.
But the company said it would resume its quarterly dividend payout of $0.88 per share on January 3, 2023.
Best Buy CEO Corie Barry said the company’s strategy during a challenging environment in the industry has paid off.
“Throughout the quarter, we were committed to balancing our near-term response to current conditions and managing well what is in our control, while also advancing our strategic initiatives and investing in areas important for our long-term growth. As a result, we delivered 3Q results ahead of our expectations coming into the quarter," Barry said in a statement.
He noted that Best Buy is ready for the holiday shopping season.
"We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe looks more similar to historical holiday periods, with customer shopping activity concentrated on Black Friday week, Cyber Monday and the two weeks leading up to December 25,” Barry said.
Best Buy shares were up more than 12% at midday, trading at about US$79 after hitting a 52-week low of $60.78 in October.
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