Best Buy sales drop smaller than expected as discounts drive demand
(Reuters) -Top U.S. electronics retailer Best Buy Co Inc (NYSE:BBY) on Tuesday reported a smaller-than-expected drop in quarterly comparable sales, as deeper discounts encouraged bargain-hunting Americans to shop for high-end products like televisions and laptops.
Shares of the company rose about 1% in premarket trading.
Over the last year, surging interest rates and rental costs have weighed on demand for non-essential products and Best Buy has been offering heavy promotions to lure customers and boost sales of electronics.
Best Buy also offered more discounts through its «Black Friday in July» savings event in an attempt to compete with Amazon.com (NASDAQ:AMZN)'s 48-hour shopping event — «Prime Day».
The company's comparable sales fell 6.2% in the second quarter ended July 29, compared with analysts' estimates of a 6.92% drop, according to IBES data from Refinitiv.
Still, the retailer cut the top end of its annual revenue and comparable sales forecast.
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