Even artificial intelligence couldn’t offset weakening consumer demand at Best Buy (BBY).

For the 12th consecutive quarter, the retailer reported negative same-store sales growth, down 2.9% year-over-year versus estimates of 0.92%. Net sales of $9.45 billion and adjusted earnings per share of $1.26 also fell short of expectations of $9.63 billion and $1.29 per share, respectively.

Best Buy CEO Corie Barry attributed the miss in an earnings conference call to “a combination of general ongoing macroeconomic uncertainty, customers waiting for deals and sales, and distraction leading up to the election, particularly in non-essential categories.”

For the quarter, sales of home appliances and entertainment fell 14.7% and 18.8%, respectively, compared with estimates of declines of 7.5% and 4%, respectively. Consumer electronics sales fell 5.8%.

Computer and mobile phone sales rose 3.80%, while services sales rose 6%, both slightly above estimates.

The company expects same-store sales growth to be flat and fall 3% in the fourth quarter, undermining optimistic expectations that demand will stabilize after the pandemic.

“Fourth-quarter sales represent a sequential improvement,” Barry told reporters on a media call. “We like what we see at the start of the holiday – a little better than our expectations.”

This year, the company launched Black Friday sales a week early as consumers look for value.

Best Buy shares fell 7% in early trading. As of Monday’s close, shares were up nearly 19% year-to-date, lagging the 25% rise in the S&P 500 (^GSPC).

Here’s what Best Buy reported for the third quarter, compared to Bloomberg consensus data estimates:

Adjusted earnings per share: $1.26 versus $1.29

Net sales: $9.45 billion versus $9.63 billion

Total Same Store Sales Growth: -2.9% vs. -0.92%

Total U.S. same-store sales growth: -2.8% versus versus -1.04%

Sales growth for:

• Devices: -14.7% vs. -7.5%

• Entertainment: -18.8% vs. -4%

• Consumer electronics: -5.8% vs. -2.72%

• Computers and cell phones: 3.8% vs. 3.5%

• Services: 6% vs. 5.83%

International: -3.7% vs. -0.57%

The company updated its full-year outlook. Same-store sales are expected to decline 2.5% to 3.5%. This compares with a previously expected decline of 1.5% to 3%.

Full-year revenue is expected to be $41.1 billion to $41.5 billion, down from the previous range of $41.3 billion to $41.9 billion.

Earnings per share guidance was updated to a range of $6.10 to $6.25, compared to a previous range of $6.10 to $6.35.

Barry said the company is at an inflection point as “the pressures that have weighed on the business,” such as inflation, the real estate market, consumer spending on experiences and the lack of new products, are beginning to change.

The story continues

Before the earnings release, analysts had expected new technologies to boost Best Buy’s results.

“The company should see a return to growth in the first half of 2025 after many consecutive quarters of negative sales as new releases and the replacement cycle kick in, particularly for products purchased in 2019-2020,” wrote Joe Feldman of from Telsey Advisory Group a note for customers.

Copilot+ PCs, which can access advanced AI models, were launched earlier this year with around 40 products. In the previous quarter, Barry said the company was the exclusive retailer for about 40% of those new PCs.

Barry said she sees AI “more as a two- or three-year … combination of constant replacement (and) innovation that helps fuel that part of the industry.”

Jason Bonfig, Best Buy’s chief merchandising officer, said on the call that there will be new AI features on platforms like Microsoft (MSFT), Apple (AAPL) and Google (GOOG). The rollout has been gradual as consumers upgrade and replace their existing devices.

Bonfig expects this to “continue into next year as we consider end-of-life support for Windows 10, which will occur in October 2025.” Barry added that there is “curiosity” about it on AI-enabled phones, especially in relation to virtual assistants.

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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].

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