Best Buy (BBY)
This morning Best Buy (BBY) reported record-high sales for 21Q4 (ended 1/31/21), up +11% YoY.
Why are shares trading -7% lower today? BBY wasn’t able to meet Wall St’s lofty expectations — which means we now have to consider the fact that everyone who needed a webcam or an Xbox probably already has one.
This phenomenon is mirrored in Best Buy’s Underlying consumer data. Average Purchase Intent Mentions for the current quarter are on pace for a YoY decline, trending -22% YoY. And, we are entering a period of incredibly difficult comps for many companies.
We’re still maintaining a cautiously bullish outlook due to noted strength in digital execution, but we’ll be keeping a close eye on the impact of more stores re-opening going forward.