What happened Shares of Best Buy (NYSE: BBY) fell 12.3% on Tuesday after the consumer electronics company issued a tepid sales forecast for the all-important holiday shopping season. So what Best Buy's revenue rose less than 1% year over year to $11.9 billion in its fiscal 2022 third quarter. The retailer's domestic comparable store sales increased 2%, as it lapped the 22.6% comp growth Best Buy experienced during the prior-year period. Best Buy's sales benefited from higher pandemic-related demand for mobile devices, home theater equipment, and appliances. "More people continue to sustainably work, entertain, cook, and connect at home," CEO Corie Barry said in a press release. Image source: Getty Images. Best Buy's domestic comp growth was partially offset by store closures and its decision to exit the Mexican market late last year. Increased promotional activity also weighed on its profit margins. Best Buy's domestic gross margin declined to 23.4% from 24% in the year-ago quarter, while its adjusted operating margin decreased to 5.8% from 6.1%. Still, Best Buy's adjusted earnings per share inched up 1% to $2.08, which was above the consensus analyst estimate of $1.91. Now what Investors, however, appeared to focus more on the company's guidance. Management expects revenue of $16.4 billion to $16.9 billion, with comparable sales potentially falling as much as 2% and adjusted gross margin declining by roughly 30 basis points. CFO Matt Bilunas also warned investors that Best Buy would likely need to offer more discounts in the year ahead, as the retail industry normalizes and supply chain bottlenecks improve. "Clearly, as inventory becomes more free, you can imagine that promotionality is going to start to increase," Bilunas said during a conference call with analysts. 10 stocks we like better than Best BuyWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Best Buy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Best Buy. The Motley Fool has a disclosure policy.Source