Best Buy Follows Walmart, Target With Cut to Profit Forecast
- Retailer also slashes sales outlook, pauses share buybacks
- Inflation is undermining demand for electronic goods, CEO says
Photographer: Callaghan O'Hare/Bloomberg
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Best Buy Co. cut its profit and sales outlook, saying inflation is pummeling consumers and eroding demand for electronics.
Operating income will only be about 4% of revenue in the current fiscal year based on “current planning assumptions,” Best Buy said in a statement Wednesday. The retailer had previously expected at least 5.2%. Comparable sales will tumble 11%, versus an earlier forecast that they would fall no more than 6%.