BEST Buy yesterday signalled it expected a strong holiday shopping season by forecasting fourthquarter profit above Wall Street estimates yesterday, buoying investor sentiment in the biggest US consumer electronics retailer.

Best Buy expects fourth-quarter adjusted earnings of $2.65 to $2.75 per share, largely above Wall Street expectation of $2.65, and also forecast upbeat same-store sales growth. The company also raised its full-year outlook.

Rivals Target and Walmart have already predicted strong sales in the crucial period between Thanksgiving and Christmas that can account for as much as 40 per cent of annual sales for US retailers faced with a slowing economy.

US consumer spending is slowing faster than economists had expected and the latest data has showed pockets of weakness, including in electrical appliances, which are Best Buy's main market.

Chief executive Corie Barry said the company was well prepared for the holidays with new products, strong inventory levels and faster delivery for online purchases.

Reuters

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