Best Buy holds off on holiday forecast as pandemic rages

REUTERS: Best Buy Co Inc held back from issuing a holiday-quarter forecast on Tuesday, saying it was unsure if a sales boom fueled by demand for remote-work computer equipment was sustainable as the COVID-19 pandemic rages on in the United States.

Shares of the consumer electronic retailer, which has been one of the few retail winners in the health crisis, fell 2.6per cent before the bell, even as it beat third-quarter sales and profit estimates.

"It is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic," Chief Financial Officer Matt Bilunas said.

The company's caution comes as consumers cut back spending on non-essential products in the absence of government stimulus, raising concerns of a tough holiday season for retailers.

Meanwhile, infections continue to surge across the country, making it difficult for companies to draw up their expectations for the season.

Best Buy's comparable sales jumped 23per cent in the third quarter ended Oct. 31, beating expectations of a 14.7per cent increase, according to IBES data from Refinitiv.

Total revenue rose 21.4per cent to US$11.85 billion a year earlier, above market expectations of about US$11 billion.

Net earnings rose to US$391 million, or US$1.48 per share from US$293 million, or US$1.10 per share, a year earlier.

Excluding one-time items, the company earned US$2.06 per share, beating analysts' average estimate of US$1.70 per share.

Best Buy said it plans to resume share buybacks in the fourth quarter.

(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur)