24/05/2022 15:05
Best Buy stock down more than 2%, contains losses unlike other retailers’ stocks – today we highlight the collapse of Abercrombie & Fitch, sinking by more than -30%.
In general, the retail sector pays for the worsening of the accounts due to the impact of inflation, which is manifesting itself with higher production costs and less propensity to buy by consumers, grappling with the problem of rising prices.
The US-made electronics retail company said it ended the quarter with net income down to $ 341 million, or $ 1.49 per share, compared to $ 595 million, or $ 2.32 per share, for the same period of the year. ‘last year.
Excluding extraordinary balance sheet items, Best Buy earned adjusted earnings per share of $ 1.61.
Revenue beat estimates to $ 10.65 billion, up from $ 10.41 billion forecast.
The group’s comparative sales fell 8% on an annual basis, less than the decline estimated by analysts of -8.6%.
Best Buy, however, was forced, like other US retailers, to cut its 2022 estimates:
now it expects revenue of between $ 48.3 billion and $ 49.9 billion, compared with the previous outlook of $ 49.3 to $ 50.8 billion.
Comparative sales are expected to decline by 3-6%, more than the previously expected decline, between -1% and -4%.
It also cut the adjusted EPS estimates, to the range of $ 8.40 to $ 9, from the previous fork of $ 8.85 to $ 9.15.
However, the Best Buy stock did not collapse, contrary to the trend of other retail stocks which paid for the deterioration of their profitability with heavy losses on the stock market.
The group had already warned in March that sales for the next two years would be weaker.
It is possible that the title has already served the bad news. In fact, last week it plummeted to a 52-week low, following the release of the quarterly reports from Wal-Mart and Target.