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American retailer Best Buy Co. Inc. has downgraded its financial guidance after opening the year with lower earnings amid the drop in its revenues during the period.
Source: Best Buy
BBY is up 1.39%, while SCHD is down 0.11%.
Best Buy now expects its revenue to fall between $48.3 billion to $49.9 billion, lower than its earlier outlook of $49.3 billion to $50.8 billion. Diluted earnings per share guidance was also lowered to $8.40 to $9.00 from $8.85 to $9.15.
Chief Financial Officer Matt Bilunas said the revision reflects the trends seen in the past several weeks and the forecast for the latter half of the year. It will continue to “proactively navigate” the rapidly changing environment.
First-quarter net earnings stood at $341 million, lower than the $595 million in the same quarter in 2021. Diluted earnings per share declined to $1.49 versus the $2.32 the previous year.
Total revenues for the first quarter declined to $10.647 billion from $11.637 billion, while gross profit fell to $2.353 billion from $2.715 billion. Operating income was slashed to $462 million from $769 million.
Bilunas said the second-quarter comparable sales and year-on-year decline in operating income will both be very similar to the first-quarter results
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