Several big box US retailers painted a picture of soft consumer spending ahead of the Thanksgiving holiday and critical Black Friday shopping period as they cut annual sales outlooks.
“Consumer demand has been more uneven and difficult to predict,” Best Buy chief executive Corie Barry said on Tuesday, with recent sales trends making it “prudent” to lower the electronics chain’s revenue guidance.
Best Buy is “prepared for a customer who is very deal-focused” during the holiday season.
Customers at home improvement store Lowe’s pulled back more than expected on do-it-yourself discretionary spending, particularly on big-ticket items, during the three months to October, chief executive Marvin Ellison said.
Meanwhile, discount retailer Kohl’s missed analysts’ estimates for comparable sales growth.
In contrast, more specialised retailers including Abercrombie & Fitch, Dick’s Sporting Goods and Burlington Stores raised their annual outlooks, betting on high holiday season demand after reporting strong back-to-school sales.