Best Buy reports another drop in quarterly sales as shoppers remain cautious about gadget spending

Best Buy, the nation’s largest consumer electronics chain, reported another quarterly drop in sales as Americans pull back on purchases of appliances and other consumer electronics gadgets to focus on essentials

NEW YORK — Best Buy, the nation’s largest consumer electronics chain, reported another quarterly drop in sales as Americans pull back on purchases of appliances and other consumer electronics gadgets to focus on essentials.

The company’s results beat Wall Street estimates, however. The Richfield, Minnesota-based retailer downgraded its sales outlook but raised its earnings view for the current fiscal year.

Best Buy reported earnings of $291 million, or $1.34 per share for the three-month period ended Aug. 3. That compares with $274 million, or $1.25 per share, in the year-go period.

Sales slipped 3% to $9.29 billion from $9.58 billion in the quarter.

Analysts were expecting $1.16 per share on sales of $9.23 billion, according to FactSet.

Comparable sales — those sales from online channels and physical stores — fell 2.3%. That was a smaller decline from the 6.1% reported in the previous quarter.

Consumers have been wrestling with high prices and elevated interest rates. The government reported earlier this month that hiring was much weaker than expected in July and the unemployment rate rose for a fourth straight month. Yet since then, economic reports have shown that layoffs are still low and that activity and hiring in services industries remains solid.

Shoppers also focusing more on experiences like travel and tickets to concerts, which also have eaten into shoppers’ spending for gadgets.