Best Buy Co Inc forecasted a smaller drop in annual sales than previously estimated on Tuesday, saying it was confident that an increase in deals and discounts would attract more inflation-weary customers during the holiday season.

In premarket trading, the retailer’s stock rose 8% to $76.60 after the company announced that it had resumed its share repurchase program and would spend approximately $1 billion on repurchases this year.

This year, rising prices have reduced demand for non-essential products, forcing Best Buy and other retailers to use discounts and promotions to clear excess stock of products such as televisions, laptop computers, and other electronics.

Best Buy anticipates a 10% drop in full-year comparable sales, compared to an 11% drop previously forecast.

Along with other retailers such as Target Corp (TGT.N) and Macy’s Inc (M.N), the company anticipates that Americans will leave their end-of-year holiday gift shopping as late as possible in order to find the best deals.

Best Buy Chief Executive Officer Corie Barry said that holiday shopping will be concentrated during Black Friday week, Cyber Monday, and the two weeks leading up to Dec. 25, a departure from previous years when holiday shopping was spread across three months, and that the retailer was timing discounts accordingly to better manage inventory levels.

“Best Buy may be better positioned for the holiday season than other retailers,” said Jason Benowitz, senior portfolio manager at Roosevelt Investment Group.

“We expect modest growth in consumer holiday spend this year and believe many companies hold too much inventory relative to demand, while Best Buy appears to have rightsized its holdings ahead of the season,” Benowitz added.

However, Best Buy warned that higher discounts would hurt holiday-quarter profit margins.

According to IBES data from Refinitiv, the company earned $1.38 per share on an adjusted basis in the third quarter, beating analysts’ estimates of $1.03 per share.

(Adapted from USNews.com)