Best Buy forecasts holiday-quarter sales below estimates, shares drop

Reuters2021-11-23

Nov 23 (Reuters) - Best Buy Co Inc(BBY.N)forecast fourth-quarter comparable sales below analysts' estimates on Tuesday, as the electronics retailer braces for a hit from likely product shortages during the crucial holiday shopping season.

The company's shares fell 11.23% to $122.5 in premarket trading.

Retailers are under tremendous pressure to keep shelves stocked for the holiday season as shipping logjams, shuttered factories in Asia and a scarcity of raw materials rip through global supply chains and drive product shortages.

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

Best Buy forecast fourth-quarter comparable sales between a fall of 2% and a rise of 1%, the mid point of which is below estimates of a 0.1% rise, according to IBES data from Refinitiv.

The company's comparable sales rose 1.6% in the third quarter, compared with estimates of a 0.3% dip.

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