Better than all the rest?Investors aren’t so sure they made the Best Buy after all, with fears of a rocky holiday season ahead.
- Shares tumbled 12% on Tuesday despite Q3 topping expectations with EPS of $2.08 on revenue that was up 1% y-o-y at $11.91bn.
- Its digital footprint is growing. It boasted its fastest shipping times ever this quarter, with same-day deliveries up 400%, and it’s pushing ahead with an online membership program. But that also means that...
- In-store sales are slowing, up just 2% in Q3 in the U.S. compared to 22.6% in the same quarter last year.
- “Organized retail crime” is becoming a real problem in Best Buy stores, according to its CEO, scaring customers and impacting profits.
- Q4 is expected to bring in up $16.9bn in revenue, though CFO Matt Bilunas warned that supply chain shortages could prompt a bunch of product discounts this quarter.
- Gross margins could drop 30 bps thanks to shipping delays, and analysts are worried that demand will suffer as people start spending money on travel and entertainment instead of investing in their lockdown lifestyles.
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