Best Buy predicts sales below estimate for holiday quarter, shares fall

The Best Buy logo is seen in a store in Manhattan, New York, the United States, on November 22, 2021. REUTERS / Andrew Kelly

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Nov. 23 (Reuters) – Best Buy Co Inc (BBY.N) expects comparable fourth-quarter sales to fall short of analyst estimates on Tuesday, as the electronics retailer prepares to be hit by likely product shortages during the crucial holiday shopping season.

The company’s shares fell 9.4% to $ 125 in pre-market trading.

Retailers are under tremendous pressure to keep shelves stocked for the holiday season as shipping bottlenecks, factories closed in Asia and raw material shortages tear global supply chains and lead to product shortages .

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A shortage of semiconductor chips used in electronic items has reduced the availability of some high-demand products, including the latest game consoles from Sony Corp (6758.T), Nintendo Co Ltd (7974.T) and Microsoft Corp (MSFT) .O).

Best Buy is forecasting comparable fourth-quarter sales of between a 2% decline and an increase of 1%, the midpoint of which is lower than estimates of a 0.1% increase, according to IBES data from Refinitiv.

The company’s comparable sales rose 1.6% in the third quarter, compared to estimates of a 0.3% decline.

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Uday Sampath report in Bangalore; Editing by Sriraj Kalluvila and Shounak Dasgupta

Our standards: Thomson Reuters Trust Principles.

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