Best Buy sees bigger drop in annual sales on inflation hit

div classBodysc17zpet90 cdBBJodivpReuters Electronics retailer Best Buy Co Inc lowered its fullyear sales and profit forecasts on Tuesday, as redhot inflation saps consumers spending power.p

pHowever, Best Buy shares jumped 8 in premarket trading after the company beat estimates for firstquarter revenue.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIts stock fell over 16 last week as retail behemoths Walmart Inc and Target Corp said surging prices of everything from toothpaste to gas was forcing consumers to prioritize household essentials over discretionary items such as electronics.p

pBest Buy said it was expecting fullyear comparable sales to fall 3 to 6, compared with its previous forecast of a 1 to 4 drop.p

pIt expects fiscal 2023 adjusted earnings per share of 8.40 to 9, compared with its previous forecast of 8.85 to 9.15. p

pTotal revenue fell to 10.65 billion from 11.64 billion in the first quarter ended April 30, but beat expectations of about 10.41 billion, according to IBES data from Refinitiv.p

p Reporting by Uday Sampath in Bengalurup

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv