Best Buy warns of holiday-quarter sales drop and lowers annual revenue outlook

Investing.com -- Best Buy (NYSE:BBY) has slashed its full-year revenue outlook, as the big-box electronics retailer projected a decline in comparable sales in the key holiday quarter.

The Minneapolis-based company's guidance painted a relatively downbeat picture of the U.S. consumer heading into the typical end-of-the-year shopping spree of gift-buying in the world's largest economy, as high inflation and elevated interest rates persuade customers to spend less on pricier items.

“In the more recent macro environment, consumer demand has been even more uneven and difficult to predict," said Chief Executive Corie Barry in a statement.

Barry added that, heading into the holidays, cost-conscious shoppers will be hunting for promotions and deals and "fast and free fulfillment." As a result, he suggested that it was "prudent" for the group to slash its annual revenue guidance.

Best Buy now sees revenue in its 53-week long fiscal year at between $43.1 billion-$43.7 billion, down at the midpoint from prior projections of $43.8B-$44.5B. The anticipated range of full-year diluted adjusted per-share earnings was also narrowed slightly to $6.00-$6.30.

In the fiscal fourth quarter, Chief Financial Officer Matt Bilunas said comparable sales will drop by 3.0%-7.0%.

Shares in Best Buy slipped in premarket U.S. trading on Tuesday.