Pressure Remains on Best Buy Despite Strong Q3 Report
Want to get a sense of just how much pressure Best Buy is under to perform well this holiday shopping season? Just take a look at it’s stock performance over the past 48 business hours and then compare that to the company’s third quarter earnings report, which was released on Tuesday morning.
The cliff notes version of the story is this: Best Buy’s stock is down more than 6.5 percent this morning (compared to its high point on Friday) even though the company just had an otherwise stellar financial filing. In Q3, Best Buy topped nearly all of its key metric estimates in the most recent quarter, and they even upped their revenue estimates for the final quarter of the year.
“Our team just delivered another strong quarter with 4.3 percent comparable sales growth and better-than-expected earnings growth,” Hubert Joly, Best Buy chairman and CEO, said in a statement Tuesday morning. “Similar to the first half of the year, our topline performance was helped by a favorable environment and driven by how customers are responding to the unique and elevated experience we are building. We have continued to make significant progress against our Best Buy 2020: Building the New Blue strategy.”