NEW YORK -- The earnings results from Best Buy and Kohl's, announced Thursday, offer the latest evidence of consumers' cautious spending amid a challenging economic environment. Best Buy, the nation's largest consumer electronics chain, reported another quarterly drop in sales as Americans pull back on gadget spending to prioritize essential expenditures, such as rent and groceries. The company, based in Minneapolis, has reported quarterly sales declines for more than two years, a stretch reaching back to the pandemic when household purchases included new laptops and other goods to work from home.
Sales were worse than Wall Street had expected, but profits were better than projected. Best Buy offered a muted forecast for the year. Investors appeared to like how the company is trying to get shoppers to spend again.
Kohl's reported a loss in the latest quarter and another drop in sales as the various moves to fix its business still haven't been enough to get shoppers to spend. The department store chain is also facing increasing competition from the likes of discounters and discount stores like TJ Maxx that offer trendy apparel at affordable prices. The results missed Wall Street expectations, and Kohl's offered a disappointing outlook.
Shares of the retailer dropped more than 25%. The U.S.
job market has remained strong, but Americans are paying more for necessities like rent and groceries even as inflation appears to have begun to cool overall. But Americans are paying more w.