Same-store sales rose at Best Buy during Q3 — up 4.4 percent — but not by as much as analysts would have liked to have seen, as pre-earnings forecasts were calling for a 4.7 percent uptick. Those results, Best Buy noted, were particularly hurt by Apple’s two-tiered product release schedule during 2017, which saw the flagship iPhone X phone released late to the market. According to Best Buy, that decision by Apple cost them $100 million in revenue over the quarter.
The iPhone X has already caused Best Buy some trouble this year, as the firm added a $100 upcharge to the base price of the already expensive phone. The company now says it will offer the high-end phone at its original price but only on an installment basis.
Hurricane closures also reportedly hurt Best Buy’s sales during the same time period. Same-store sales suffered by 15 to 20 basis points due to the impact of hurricanes in Texas, Florida and Puerto Rico and earthquakes in Mexico, according to the latest release of figures. By some estimates, as many as 8 percent of Best Buy’s stores could have been impacted by hurricanes.
The Q3 report showed net income increasing to $239 million, or $0.78 per share, from $194 million, or $0.61 per share, a year earlier.
Best Buy’s revenue rose 4.2 percent, increasing to $9.32 billion, but falling short of expectations of $9.4 billion.
The forecast for adjusted earnings for the fourth quarter was $1.89 to $1.99 per share, well short of analysts’ expectations of $2.03 per share.
Best Buy stocks fell 4.4 percent to $54.80 in pre-market trading on the disappointing results.