Best Buy had a strong few months – but still took a hit on Wall Street - Bring Me The News

Best Buy had a strong few months – but still took a hit on Wall Street

But its shares still took a bit dip. Here's why.

Best Buy is simultaneously celebrating a strong few months for sales, while also warning people there's no way it'll continue.

Chairman and CEO Hubert Joly said Tuesday morning the retailer had "higher-than-expected comparable sales of 5.4 percent" in the second quarter, which he credited to a big consumer demand for tech coupled with Best Buy's sales strategy.

You can get all the specific numbers here, but bottom line: they beat people's expectations and had a solid quarter, CNBC says.

Then a couple hours later Joly got on a conference call and said this is "not the new normal," warning people against expecting these types of gains to continue, Bloomgberg reports.

That caused Best Buy's stock to plummet, marking the worst stock decline for the company in more than 12 months, Bloomberg says.

Here's what sold well

Best Buy says computing, wearables, smart home and mobile were among the top growth categories in merchandise.

In terms of revenue, tablets didn't do as well, partially offsetting the gains made in those other categories.

Online sales were up, with Best Buy noting domestic revenue of $1.1 billion there for the quarter. That's up 31.2 percent on a comparable basis, with Best Buy saying they had more traffic and converted more of those visits to sales.

Online made up 13.2 percent of the domestic revenue pie for the quarter, up from 10.6 percent last year.

Best Buy employs about 8,000 people in Minnesota, making it the 22nd-biggest employer in the state.

Next Up