Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Business and Economic News
The Associated Press

Best Buy and the reluctant shopper. Sales fall as Americans pull back on spending

The sign on the front of a Best Buy store
The sign on the front of a Best Buy store is pictured in Chicago. Best Buy sales and profits slid in the second quarter, Tuesday, Aug. 29, 2023, as the nation's largest consumer electronics chain continues to wrestle with a pullback in spending on gadgets after Americans splurged during the pandemic.
Scott Olson | Getty Images file

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

Best Buy sales and profits slid in the second quarter as the nation's largest consumer electronics chain continues to wrestle with a pullback in spending on gadgets after Americans splurged during the pandemic.

The decline in sales was smaller than what Wall Street had anticipated, however, and profits were better than expected.

The U.S. job market has remained resilient, but Americans are facing higher prices and more expensive credit with the Federal Reserve hiking benchmark interest rates to combat inflation. It's more expensive to take out loans for appliances, cars and houses, or to use a credit card. As a result, consumers have become reluctant to spend unless there is a sale. They’re being more selective with what they will buy and, in many cases, trading down to buy cheaper stuff.

Comparable sales — sales from physical stores open at least a year, and digital channels — fell 6.3 percent, dragged down by declines in computing and appliances.

Best Buy, based in Minneapolis, earned $274 million, or $1.25 per share, during the quarter ended July 29. That easily topped the per-share earnings of $1.06 that Wall Street was expecting, according to a survey by FactSet, but below the $306 million the company earned in the same period last year.

Sales fell 7.2 percent to $9.58 billion, slightly better than analyst estimates.

"Our financial results were better than expected, and they reflect a consumer electronics industry that remains challenged due to the pull-forward of demand in prior years and the various macroeconomic factors that we are all too familiar with,” CEO Corie Barry said in a prepared statement.

This year will be the low point in demand for new technology after two years of declines, Barry said, and next year the consumer electronics industry should stabilize and enjoy possible growth as shoppers look to upgrade and replace their gadgets.

Best Buy Inc. lowered the high-end of its full year revenue outlook to the midpoint that it had previously issued but left the low-end of its revenue guidance unchanged. At the same time, it narrowed its profitability ranges.

Shares were essentially flat before the opening bell Tuesday.