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Shares of the consumer electronic retailer, which has been one
of the few retail winners in the health crisis, fell 2.6% before
the bell, even as it beat third-quarter sales and profit
estimates.
"It is very difficult for us to predict how sustainable these
trends will be due to the significant uncertainty related to the
various impacts of the pandemic," Chief Financial Officer Matt
Bilunas said.
The company's caution comes as consumers cut back spending on
non-essential products in the absence of government stimulus,
raising concerns of a tough holiday season for retailers.
Meanwhile, infections continue to surge across the country,
making it difficult for companies to draw up their expectations
for the season.
Best Buy's comparable sales jumped 23% in the third quarter
ended Oct. 31, beating expectations of a 14.7% increase,
according to IBES data from Refinitiv.
Total revenue rose 21.4% to $11.85 billion a year earlier, above
market expectations of about $11 billion.
Net earnings rose to $391 million, or $1.48 per share from $293
million, or $1.10 per share, a year earlier.
Excluding one-time items, the company earned $2.06 per share,
beating analysts' average estimate of $1.70 per share.
Best Buy said it plans to resume share buybacks in the fourth
quarter.
(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur)
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