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Best Buy Revises Outlook

Best Buy Co., Inc. (BBY) reported that its comparable sales declined 8.0% for the first quarter ended April 30, 2022. The macro conditions worsened since the company provided guidance in early March which resulted in sales being slightly lower than its expectations. These trends have continued into second quarter and, as a result, Best Buy Co. revised its sales and profitability expectations for the year.

For fiscal 2023, the company now expects revenue of $48.3 billion to $49.9 billion, compared to the prior outlook of $49.3 billion to $50.8 billion. Comparable sales are projected to decline in a range of 3.0% to 6.0%, compared to the prior outlook of a decline of 1.0% to 4.0%. Non-GAAP EPS is expected in a range of $8.40 to $9.00, compared to the prior outlook of $8.85 to $9.15.

Best Buy CFO Matt Bilunas said: "As it relates specifically to second quarter, we anticipate that our comparable sales and the year-over-year decline in our non-GAAP operating income rate will both be very similar to our first quarter results."

First quarter earnings came in at $341 million, or $1.49 per share compared with $595 million, or $2.32 per share, last year. Excluding items, adjusted earnings was $1.57 per share for the period. Analysts on average had expected the company to earn $1.61 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenue for the quarter fell 8.5% to $10.65 billion from $11.64 billion last year. Analysts on average had estimated $10.4 billion in revenue.

Also, the company announced its board of directors has authorized the payment of a regular quarterly cash dividend of $0.88 per common share. The quarterly dividend is payable on July 5, 2022, to shareholders of record as of the close of business on June 14, 2022.

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