Best Buy Revises Its FY23 Plans After Q1 Struggle

Best Buy

Best Buy hasn’t been able to withstand the economic triple whammy of a pandemic, supply chain snags and a looming recession as well as some other brands, and that struggle has the company rethinking what lies ahead for it the rest of this fiscal year.

While Best Buy stock continued to rise in early trading Tuesday (May 24), the company reported an 8% year-over-year drop in comparable store sales to $10.6 billion for the 13 weeks ending April 30 that forced leadership to revise its full-year fiscal 2023 plans downward.

Best Buy CEO Corie Barry put a positive spin on the latest numbers in a company press release.

“Even with the expected slowdown this year, we continue to be in a fundamentally stronger position than we were before the pandemic from both a revenue and operating income rate perspective,” she said in the release. “…We have a unique value creation opportunity and are investing now, as we have successfully invested ahead of change in our past, to ensure we’re ready to meet the needs of our customers and employees and retain our unique position in our industry.”

For full-year fiscal 2023, Best Buy is dropping its revenue guidance from a range of $49.3 billion to $50.8 billion to a range between $48.3 billion and $49.9 billion, with a comparable sales decline between 3% to 6% compared to the previous 1% to 4% expectation, according to the release.

About 300 Best Buy stores and will offer a new collection of skincare technology, featuring Foreo, Vanity Planet and PMD Beauty, among other brands. The collection also includes the latest products from Therabody.

Read more: Best Buy Adds Health, Outdoor and Transportation Products

Best Buy has also added heaters, fire pits, speakers, TVs, grills and Yardbird outdoor furniture.

The tech-based retailer is also adding charging devices for its eTransportation suite of products in several stores while bringing some of the 750 related products and accessories into stores in the next 18 months rather than just selling them online.