Best Buy and Kohl's report continued sales decline as Americans prioritize essential purchases

Sales at Kohl's were not as good as expected by Wall Street. However, the profits were better than what was predicted. This happened because even though Kohl's tried different strategies to improve its business, shoppers still didn't spend much money there. The job market in the U.S. is strong, but people are paying more for things like rent and groceries. Even though prices are going up, the overall inflation seems to be slowing down. During the pandemic, Best Buy saw a rise in sales because people were buying a lot of electronics to work from home or for virtual learning. Now, Best Buy is making changes to its management and hiring more staff at its stores to help customers. The company faced challenges when manufacturers focused on fixing supply chain issues during the pandemic, which slowed down innovation. However, new high-tech products like AI-powered computers from companies like Microsoft are expected to attract shoppers because they are more efficient and have longer battery life. Best Buy made a profit of $246 million in the quarter that ended on May 4. The company expects to earn between $5.75 to $6.20 per share for the year. Analysts had predicted earnings of $6.04 per share. Best Buy's sales decreased by 5.3% compared to the same quarter last year, with comparable sales down by 4.4%. The company mentioned that beauty products have been selling well due to a partnership with Sephora. Best Buy's sales dropped again in the latest quarter because people are spending cautiously on essential items and paying more for necessities. The company is offering discounts on TVs like Sony 85" X80K LED 4K UHD smart Google TV for $1,000, Samsung 75" TU690T Crystal UHD 4K smart Tizen TV for $550, and LG 65" UR9000 series 4K TV for $500. These TVs offer high-quality picture and smart features for an immersive viewing experience.