Electronics retailer Best Buy has lowered its annual revenue forecast after suffering from lower sales in the third quarter, a negative trend that is expected to persist, according to an analyst.

“Unfortunately, the near-term outlook does not look too favorable. We do not expect this holiday to be a blockbuster one for electronics and next year will remain subdued because of economic pressures,” said Neil Saunders, MD at GlobalData.

“We have confidence Best Buy can remain disciplined operationally but, against this backdrop, it also needs to think creatively about how to grow the top line.”

Best Buy now expects FY24 revenue to be between $43.1 billion to $43.7 billion and comparable sales to decline 6.0 per cent to 7.5 per cent.

The new guidance comes as Best Buy’s third-quarter revenue fell 7.8 per cent year over year to $9.8 billion while net earnings slid 5.1 per cent to $263 million.

“In the more recent macro environment, consumer demand has been even more uneven and difficult to predict. Based on the sales trends in Q3 and so far in November, we believe it is prudent to lower our annual revenue outlook,” said Corie Barry, CEO at Best Buy.

For the fourth quarter, the company expects comparable sales to decline in the range of 3.0 per cent to 7.0 per cent.