U.S. retail giant Best Buy announced on Tuesday that it has forecasted a smaller-than-expected drop in sales ahead of the busy holiday season. While the big box store previously forecasted an 11% drop in full-year comparable sales, it now estimates a 10% sales decline.
The company’s sales during the third fiscal quarter of 2022 also proved to be better than was first estimated. While industry experts forecasted a 12.9% fall in comparable sales for the quarter, the company only experienced a 10.4% decline during Q3, as revealed by IBES data from Refinitiv.
Best Buy’s stock gained 6% on the New York Stock Exchange during premarket trading on Tuesday to $75 following the release of the retailer’s latest estimates.
Rising inflation has contributed to price surges across the retail sector, thereby driving down demand for non-essential products. In response, Best Buy has resorted to running discounts and promotions in an effort to drive foot traffic and clear out excess stock of products such as laptops, televisions, and other electronic devices.