NEW YORK (AP) — Best Buy, the nation’s largest consumer electronics retail chain, reported another quarterly sales decline Thursday as Americans buy fewer appliances and consumer electronics to focus on essentials.

But Best Buy’s business stabilized in the last quarter and results beat Wall Street expectations. The Richfield, Minnesota-based retailer lowered its sales forecast but raised its profit forecast for the current fiscal year.

Best Buy shares rose more than 17% on Thursday.

“Overall, customers remained deal-focused and were drawn to more predictable sales moments, such as the Fourth of July, Black Friday in July and the start of back-to-school sales events,” Best Buy CEO Corie Barry told analysts during a conference call. She noted that comparable sales – those across digital channels and physical stores – were the best of the quarter in July.

The company reported sales increases in tablets, computers and services, which more than offset declines in appliances, home theater and games.

Barry noted that major appliances and TVs remain heavily discounted, which is expected to continue through the holidays. However, she said Best Buy remains intentional and deliberate about where and when the retailer cuts its prices to balance profitability and sales.

Consumers are struggling with high prices and increased interest rates. The government reported earlier this month that hiring in July was much lower than expected and the unemployment rate rose for the fourth month in a row. Since then, however, economic reports have shown that layoffs remain low and activity and hiring in the services sector remain stable.

In addition, shoppers place more value on experiences such as travel and concert tickets, which also reduce their spending on gadgets.

For Best Buy, recent trends represent a reversal from the height of the pandemic, when the company’s sales were boosted by excessive spending from people buying electronics to work from home or better equip their children for virtual learning. Government stimulus programs also boosted spending.

To boost sales, Best Buy is modernizing its stores to attract customers and focus on its paid membership services. The company has also reduced its management layers and invested in more workers in its stores to help customers.

Best Buy just hired specially trained experts in the computer departments in hundreds of its stores and plans to do the same in the home theater and appliance departments. The company said more than 60 percent of its employees are certified in at least two categories.

There is also a focus on new devices such as artificial intelligence-powered PCs from companies like Microsoft. These are expensive, but they are more efficient and offer longer battery life. And these new devices will lead to lower prices for older models.

Earlier this month, Best Buy announced a new live tracking feature that uses artificial intelligence to allow customers to digitally track their deliveries and installations when purchasing large items such as big-screen TVs, refrigerators, washers and dryers.

Best Buy reported earnings of $291 million, or $1.34 per share, for the three-month period ended August 3. The company reported earnings of $274 million, or $1.25 per share, for the same period a year ago.

Revenue fell 3% to $9.29 billion from $9.58 billion in the quarter.

According to FactSet, analysts had expected earnings of $1.16 per share on sales of $9.23 billion.

Comparable sales – i.e. sales from online channels and physical stores – fell by 2.3 percent. This was a smaller decline than the 6.1 percent in the previous quarter.

Best Buy has lowered its revenue forecast for the fiscal year from the previous quarter. The company now expects revenue between $41.3 billion and $41.9 billion, compared to the previous forecast of $41.3 billion to $42.6 billion. The company expects comparable sales to decline by 1.5 percent to 3 percent. In May, the company had expected sales to be flat to a decline of 3 percent.

The company raised its earnings forecast for the year to $6.10 to $6.35 per share. The previous forecast was $5.75 to $6.20 per share.

According to FactSet, analysts had expected earnings of $6.07 per share on revenue of $41.75 billion for the year.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.