Best Buy shares fall as company cuts forecast, cites weaker demand

Customers shop at a Best Buy store on August 24, 2021 in Chicago, Illinois.

Scott Olson | Getty Images

Best Buy on Wednesday cut its forecast for the year and the second quarter, saying it has seen weaker demand for consumer electronics amid inflation.

Shares of the company fell about 3% in after market trading.

The consumer electronics retailer said it now expects same-store sales to decline about 13% for the second quarter. That’s lower than it said in May, when it predicted it would be roughly in line with the first quarter when it dropped by 8%.

CEO Corie Barry said the company expected sales to slow as it laps a period of unusually high demand, but she said the economic backdrop has become more challenging.

“As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened even further, leading to Q2 financial results below the expectations we shared in May,” she said in a news release.

Yet she added that its sales are higher than before the pandemic, emphasizing the company’s strong position even in a turbulent time.

This story is developing. Please check back for updates.