09:12 AM EST, 11/26/2024 (MT Newswires) -- Best Buy ( BBY ) cut the top end of its full-year earnings outlook and lowered its sales guidance on Tuesday, as the electronics retailer's fiscal third-quarter results came in below market expectations amid softening consumer demand.

Adjusted earnings are now anticipated to be in a range of $6.10 to $6.25 per share for fiscal 2025, reflecting a lower top end versus the company's prior guidance of $6.35. The consensus on FactSet is for non-GAAP EPS of $6.26. The stock was down 2.3% in premarket activity.

The retailer expects revenue between $41.1 billion and $41.5 billion for the ongoing fiscal year, down from its previous outlook of $41.3 billion to $41.9 billion. Comparable sales are set to decline 2.5% to 3.5%, compared with the prior guidance range for a 1.5% to 3% decrease. The Street is looking for revenue of $41.54 billion and forecasts same-store sales to be down 2.1% for the year.

"We continue to see a consumer who is seeking value and sales events, and one who is also willing to spend on high price-point products when they need to or when there is new, compelling technology," Chief Executive Corie Barry said in a statement. "Thus, we are balancing our optimism in both the industry and our unique positioning with a pragmatic approach to likely uneven customer behavior going forward."

Best Buy's ( BBY ) adjusted EPS fell 2% to $1.26 for the quarter ended Nov. 2, missing the Street's view for $1.30. Revenue declined to $9.45 billion from $9.76 billion in the prior-year quarter, trailing FactSet analysts' $9.63 billion estimate.

"In the third quarter, our teams delivered an in-line non-GAAP operating income rate on sales that were a little softer than expected," according to Barry. "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."

Comparable sales slipped 2.9%, amid declines in the company's domestic and international operations, worse than the market's projection for a 1% decrease. The appliances, home theater and gaming categories drove the domestic same-store sales decline, partially offset by growth in computing, tablets and services, according to Best Buy ( BBY ). Foreign-exchange headwinds weighed on international sales.

For the current quarter, Best Buy ( BBY ) projects comparable sales to be flat to down 3% on an annual basis, Chief Financial Officer Matt Bilunas said. FactSet analysts are currently forecasting same-store sales to edge down 0.3% for the three-month period.

"In the first few weeks of (the fourth quarter), as holiday sales have begun and the election is behind us, we have seen customer demand increase again," Barry said.