The stock of Best Buy falls as a result of hesitant consumers.

The Key Takeaways

• Best Buy’s third quarter profit and revenues were lower than expected as consumers resisted spending.
• Customers waiting for bargains and ongoing economic worry, as well as the run up to the Presidential election, were blamed by the electronics retailer for their poor performance.
• Best Buy has cut its earnings forecast for the full year, as well as revenue and comparable sales.

Best Buy’s (BBY) stock fell 7% on Tuesday after it missed its profit and revenue estimates. It also lowered its sales guidance, as the consumer pulled back spending in the lead up to the crucial holiday shopping season.

Best Buy reported fiscal 2025’s third quarter earnings per share of $1.26. Revenue fell more than 3% from the previous year to $9.45 Billion. Visible Alpha surveyed analysts who were expecting $1.29 per share and $9.63billion respectively.

Sales in comparable stores fell by 2.9%. The slowdown in the purchase of home theatre, gaming, and appliances impacted domestic comparable store sales by 2.8%. The international comparable store sale was down by 3.7% and the online comparable store loss is 1.0%.

CEO Attributes Results To 'Ongoing Macro Uncertainty, Customers Waiting for Deals'

Corie Barton, Chief Executive Officer (CEO), has said “a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand” The second half of the third quarter.

According to the company, it expects to earn EPS for the full year of $6.10-$6.25, compared to its previous forecast of $6.10-$6.35. Revenue is expected to be $41.1 billion- $41.5billion, up from the $41.3 billion- $41.9billion previously forecast. It expects  comparable store sales will sink 2.5% to 3.5%, down from a 1.5% to 3.0% decline previously.  

Despite today's tumble, shares of Best Buy are 11% higher year-to-date.

UPDATE—This article has been updated with a new headline and the latest share price information.

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