Best Buy Reports Its Best Quarter in 25 Years as Online Sales Soar
It’s shaping up to be a happy holiday season for Best Buy, which just had its best fiscal quarter in 25 years. The consumer electronics giant released its third-quarter earnings on Tuesday, showing that its same-store sales rose by 23% and its online sales in the U.S. soared by 174%. Its revenue jumped to $11.85 billion from $9.76 billion in 2019, eclipsing Wall Street’s prediction of $11 billion in revenue.
Despite the good news, Best Buy failed to lure investors on Tuesday, and its stock was down by 7% at day’s end. The problem is that Best Buy very well might have peaked during the pandemic when, forced to stay home, consumers turned to the retailer to get appliances, computers and other home essentials. Even CFO Matt Bilunas seems less than certain of Best Buy’s abilities to maintain remarkable growth over the coming months.
“While the demand for the products and services we sell remains at elevated levels as we start the fourth quarter, it is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic,” Bilunas said in a statement. Additionally, Best Buy is bracing for turbulence as it anticipates higher shipping costs, inventory challenges amid the pandemic and lower-margin holiday sales.
Best Buy declined to give near-term profit guidance to Wall Street, which is also not a good look for the company or the investors backing it.
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