The Price Is Right

Best Buy has good earnings

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What's going on?

After reporting better-than-expected results on Tuesday, Best Buy won the star prize: the consumer electronics retailers shares rose over 10% to hit an all-time high.

What does this mean?

US staple Best Buy didnt just report strong sales, it raised its forecast for the upcoming holiday season despite the looming threat of tariffs on consumer electronics made in China. The company buys about 60% of its goods from the Peoples Republic at the moment, but that might change next year as companies move their manufacturing away from the trade-warring country (tweet this).

Best Buy appointed a new CEO earlier this year, whose strategy of expanding into new areas like healthcare seems to have offset falling sales in consumer electronics. The retailers now selling goods ranging from fitness machines to in-home safety sensors for seniors (potentially a smart decision, considering the USs aging population). And aside from hawking plain old goods, its expanded into services like repairs and tech support too.

Why should I care?

The bigger picture: How not to get Amazoned.
Big box retailers like Best Buy, Target, and Walmart seem to be successfully fending off Amazon, primarily by finding more ways to get their online orders delivered quicksmart. Best Buy, for example, has started to offer free next-day delivery, as well as a one-hour in-store pickup service. The plan seems to be paying off: Best Buys online sales grew 15% last quarter.

Zooming out: Big Dicks energy.
Dicks Sporting Goods seems to have its deliveries sorted too: the US retailer reported robust results on Tuesday, largely driven by its online offerings. Dicks sales beat analysts predictions, and the firm just like Target and Walmart intheir earnings updates ? raised its expectations for the holiday season, sending its shares up 18%.

Originally posted as part of the Finimize daily email.

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