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Best Buy’s quarterly sales drop, as inflation-weary consumers pull back on spending

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Televisions are seen for sale at a Best Buy store in New York City.
Andrew Kelly | Reuters

Best Buy on Tuesday said sales dropped by about 13% in the second fiscal quarter, as the retailer felt a pullback from inflation-weary shoppers.

The retailer reaffirmed its full-year guidance, saying it expects softer demand for consumer electronics as people pay more for groceries and gas. It expects same-store sales to drop by about 11% for the 12-month period ended in January. The company had cut its full-year and second-quarter forecast in late July.

Here’s how the retailer did in the three-month period ended July 30 compared with what Wall Street was anticipating, according to a survey of analysts by Refinitiv:

Earnings per share: $1.54 adjusted vs. $1.27 expectedRevenue: $10.33 billion vs. $10.24 billion expected

Best Buy’s quarterly net income fell to $306 million, or $1.35 per share, from $734 million, or $2.90 per share, a year earlier. Excluding items, it earned $1.57 per share.

As of Monday’s close, Best Buy shares are down about 27% so far this year. Shares closed Monday at $73.70, down less than 1%. The company’s market value is about $16.6 billion.

This story is developing. Please check back for updates.

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