Best Buy posts better-than-expected 3Q profits but sales sluggish amid spending malaise

abcnews.go.com:

Best Buy Co. posted stronger-than-expected profits, but reported a deeper-than-expected drop in revenue for the fiscal third quarter as shoppers continue to pull back on buying gadgets in an uncertain economy

NEW YORK — Best Buy Co. on Tuesday posted stronger-than-expected profits for its fiscal third quarter but is still struggling with sales declines as shoppers pulled back on a broad range of items from appliances to computers and phones in an uncertain economy.

The nation’s largest consumer electronics chain also cut its annual sales outlook.

Best Buy joins a string of other major retailers reporting results that have shown a further softening in consumer spending as shoppers come more under more pressure from dwindling savings, higher interest rates and lingering inflation.

Kohl’s posted on Tuesday a bigger-than-expected decline in quarterly sales, as customers spent less at its department stores. Lowe's, the nation's second-largest home improvement chain behind Home Depot, also reported drops in both sales and profits. It cut its annual sales outlook as it reported a big customer pullback in do-it-yourself projects.

Upscale department store Nordstrom reported a revenue decline that was deeper than analysts expected. But it reaffirmed its revenue outlook.

The job market has remained resilient, but Americans are facing higher prices on many necessities like food and rent, even as the inflation rate is easing overall. And they're also facing more expensive credit with the Federal Reserve hiking benchmark interest rates to combat inflation. It’s costing more to take out loans for appliances, cars and houses, or to use a credit card. As a result, consumers have become reluctant to spend unless there is a sale.

That