(Reuters) -Best Buy ( BBY ) cut its annual profit and sales forecasts on Tuesday, signaling a muted holiday shopping season amid sluggish demand for pricey electronics such as televisions and home theater systems.

Its shares fell 7% before the bell as the company also missed market expectations for third-quarter profit. The stock has gained 18.8% so far this year, through last close.

"During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand," CEO Corie Barry said in a statement.

The cut from the top U.S. electronics retailer adds to recent dour forecasts from retailers such as Target and Kohl's that point to an uneven holiday season.

Best Buy ( BBY ) now expects annual comparable sales to decline between 2.5% and 3.5%, compared with its earlier forecast of a decline between 1.5% and 3%.

The company projected annual adjusted profit per share of $6.10 to $6.25, compared with earlier target of $6.10 to $6.35.

Excluding items, the company reported third-quarter earnings per share of $1.26, compared with a market expectation of $1.29, according to data compiled by LSEG.

Third-quarter comparable sales in the U.S. declined 2.8%, bigger than analysts' estimate of a 0.85% fall.

(Reporting by Juveria Tabassum; Editing by Sriraj Kalluvila)