Tuesday's Market Minute: Best Buy (BBY) Earnings

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Best Buy shares were up before the bell this morning, at one point jumping around 9% higher despite reporting a mixed 1Q and lowering full year guidance. 1Q same-store sales were down 8.0%, which was better than the Street expected. Even online sales were down, with domestic comp falling 14.9%.

Best Buy expects the consumer shift away to continue, saying 1Q trends have continued into 2Q and macro conditions have worsened since its last guidance in early March. For the full year, Best Buy dropped its estimates for revenue, same-store sales, and EPS.
However, investors might have been prepared for Best Buy’s numbers after Target’s CEO said sales of TVs and similar items had dropped off in its own 1Q. With inflation higher and summer coming, a retailer focused on consumer electronics could be expected to struggle. Still, revenue still beat expectations this quarter, and Best Buy’s $1.5 billion share repurchase program remains unchanged.

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