Best Buy Tempers Expectations on COVID-19; Stock Down

Best Buy tempered expectations after a 13% year-on-year sales increase, to $16.9 billion, in the quarter ended Feb. 1 (see Q4 materials here). The retailer didn’t give customary full fiscal year guidance because of pandemic uncertainties, but “planning assumptions” are for comparable sales of minus 2% to 1% higher, said Chief Financial Officer Matt Bilunas on a Thursday call. While demand for technology remains at “elevated levels,” uncertainty about administration of vaccines and shopping patterns makes predictions difficult, Bilunas said. Online sales grew 89.3% to $6.7 billion, said CEO Corie Barry. Headcount dropped 17% to 102,000, she said. Best Buy is partnering with Microsoft on healthcare initiatives, said Bilunas. Barry cited growing opportunities in 5G, beyond smartphones, noting customers can schedule consultations with a Best Buy adviser while shopping at Samsung.com. Shares closed down 9.3% at $102.94.