Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: dvena Big red star, 1000 posts Top Recommended Fools Old School Fool Ticker Guide SC1 Green Captain Most Active, Foolanthropy 2013 Winner of the 2009 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 58823  
Subject: Phoenix or Burn Victim? Date: 1/16/2013 3:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Fellow Fools,

This was bittersweet: BBY was one of my first Stock Advisor investments. I bought in August of 2007 and sold a little over three years later at break-even ~$45 p/s. It has since fallen to a third of that value.

Best Buy is still my favorite electronics retailer, but I fear for what the future holds for them. AMZN continues to take share of electronics (as well as other categories) from BBY, as well as WMT and TGT. I buy much from AMZN and am an investor, but it is sad to see the path that BBY is currently on...

It seems that Best Buy (NYSE: BBY) investors finally have something to celebrate. When Best Buy reported earnings on Friday, the stock price jumped over 16%. So they must have had a really GREAT quarter, right? Actually, it just stunk less.

Dig a little deeper into the numbers and what you see is no reason to celebrate. Revenue fell by 0.4% from a year earlier during the all-important holiday shopping season. The crucial same store sales metric, which factors out stores open less than a year, actually dropped 1.4% in the recent quarter. US same store sales were flat and international same store sales tanked 6.4%. However, the drop was less than analysts and investors were anticipating. They also saw online sales increase by 10%. So let’s break out the bubbly, right?

Unfortunately, Best Buy is sandwiched firmly between a rock and a hard place and the future presents challenges. However, in order to understand the threat to Best Buy and other big-box retailers, we must first look at a broader societal retail trend and its implications.


lnkd.in/KWun4M

Let me know what you think.

Danny
MELI Ticker Guide
ATW Ticker Guide
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement