On Tuesday, Best Buy Co., Inc BBY reported third-quarter fiscal 2025 adjusted earnings per share of $1.26, missing the consensus of $1.29.

Comparable company sales fell 2.9%. Quarterly revenue fell to $9.45 billion from $9.76 billion a year earlier, missing analysts’ consensus of $9.63 billion.

Domestic sales of $8.70 billion fell 3.3% year-over-year, primarily driven by a 2.8% comparable sales decline.

From a merchandising perspective, the largest drivers of the comparable sales decline on a weighted basis were appliances, home theater and gaming, partially offset by growth in the computer, tablet and services categories.

Domestic online sales of $2.73 billion decreased 1.0% on a like-for-like basis, and as a percentage of total domestic sales, online sales were 31.4%, compared to 30.6% a year ago.

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“In the third quarter, our teams delivered non-GAAP operating income on slightly weaker-than-expected revenue,” said Corie Barry, CEO of Best Buy.

“In the second half of the quarter, a combination of ongoing macroeconomic uncertainty, customers waiting for offers and sales events, and pre-election distraction, particularly in non-essential categories, resulted in weaker-than-expected demand. In the first few weeks of the fourth quarter, as holiday sales have begun and the election is behind us, we have seen a renewed increase in customer demand.”

International sales of $748 million decreased 1.6%, reflecting a 3.7% comparable sales decline and the negative impact of foreign exchange, driven in part by revenue from FY25 Canadian openings Best Buy Express locations were offset.

Outlook: Best Buy lowered its fiscal 2025 revenue forecast to $41.1 billion to $41.5 billion from $41.3 billion to $41.9 billion, compared to the consensus of $41.59 billion.

The company revised its adjusted EPS forecast to $6.10-$6.25 from $6.10-$6.35, compared to the consensus of $6.25.

Comparable sales are expected to decline between 3.5% and 2.5%, compared to previously forecast declines of between 3.0% and 1.5%.

Best Buy expects fourth-quarter comparable sales to be flat or down 3% and an adjusted operating income rate of 4.6% to 4.8%.

Price promotion: BBY shares were down 7.23% at $86.30 during the pre-market session at last check on Tuesday.

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