BestBuy Co. Inc BBY Shares traded lower on Thursday after the company updated its second-quarter and full-year outlook.

Best Buy expects comparable sales to decline about 13% in the second quarter. The company expects its operating profit rate to be around 3.7% in the second quarter. In addition, the company expects its inventory level at the end of the second quarter to be roughly flat compared to the same period last year.

“As high inflation persists and consumer sentiment has deteriorated, customer demand in the consumer electronics industry has weakened even further, causing second-quarter financial results to fall short of expectations, which we shared in May,” he said Corie BarryManaging Director of BestBuy.

Analyst Rating: Several analyst firms lowered price targets for the share after the update.

• Jefferies downgraded Best Buy from a buy rating to hold and lowered its price target to $71 from $106.
• Telsey Advisory Group kept Best Buy with an Outperform rating and lowered its price target to $82 from $88.
• Wells Fargo kept Best Buy with an equal weight rating and lowered its price target to $70 from $82.
• UBS kept Best Buy at a neutral rating and lowered its price target to $76 from $80.
• Morgan Stanley kept Best Buy with an equal weight rating and lowered its price target to $82 from $90.

Best Buy will report its second quarter financial results on August 30th.

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BBY Price Promotion: Best Buy has traded between $112.96 and $64.29 over a 52-week period.

The stock is up 1.38% to $75.52, according to data from at press time Gasoline Pro.

Photo: courtesy of Best Buy.