Best Buy Co. jumped the most in more than two years after modestly improving its profit forecast and signaling its recent sales slump is starting to ease.
Adjusted operating income this year will be “slightly higher” than the previous forecast of 4% of sales, the consumer-electronics retailer said Tuesday as it reported third-quarter results. In addition, the decline in comparable sales this year won’t be quite as bad as previously feared, the company said.
The surprisingly upbeat report “suggests that the worst of the sales declines may be behind the company,” Scot Ciccarelli, an analyst at Truist Securities, said in a report. Declining inventories also “should imply less markdown risk/pressure for the holiday selling season.”
Source: Bloomberg
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