Best Buy’s Sales Cool, and It Warns of a Rough Year Ahead |

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Best Buy expects higher supply-chain expenses to be worse than previously predicted this fiscal year..

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Joe Raedle/Getty Images

Electronics retailer

reported falling sales and profits for the latest quarter and said its results for the current fiscal year will be worse than it had previously predicted amid increased promotions and higher supply-chain expenses.

“Macro conditions worsened since we provided our guidance in early March, which resulted in our sales being slightly lower than our expectations,” said Best Buy CEO

Corie Barry.

Best Buy reported earnings of $341 million for the quarter ended April 30, compared with $595 million a year earlier. The company’s revenue for the quarter fell roughly $1 billion from the previous year to $10.6 billion. Comparable sales dropped 8%, compared with a rise of 37% in the quarter a year ago.

The company hadn’t released guidance for the first quarter but did say after the holiday quarter that it expected sales to fall in fiscal 2023, the retailer’s current year.

On Tuesday, Best Buy said revenue for the year would now be between $48.3 billion and $49.9 billion, cut from its March forecast of $49.3 billion to $50.8 billion. Comparable sales are now expected to decline 3% to 6%, compared with the prior guidance of a decline of 1% to 4%

Write to Charity L. Scott at Charity.Scott@wsj.com