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Best Buy Co. (BBY)

- NYSE
  • Jan. 14, 2014, 5:19 PM
    • Specialty retail categories are where e-commerce has had the strongest impact on brick-and-mortar stores, concludes Re/code after scanning sales charts.
    • While food and healthcare categories show lower e-commerce penetration as consumers only slowly pivot away from their traditional buying habits - retailers that sell clothing (EXPR, RUE, ZUMZ, PSUN, AEO, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) , sporting goods (HIBB, CAB, BGFV), and electronics (BBY, RSH) continue to lose market share to online sellers at an astonishing pace that shows little signs of slowing down.
    • Demographics aren't working in the favor of the trend reversing itself either as more teens show a tendency to favor online upstarts such as Nasty Gal or Stitch Fix over former mall rat favorites like Gap (GPS), Aeropostale (ARO) or Abercrombie & Fitch (ANF). The younger set is also attuned to deal-shopping and buying used products online which are margin killers in the electronics category.
    • Re/code sees at least two companies that don't mind the e-commerce evolution: FedEx (FDX) and UPS (UPS) could get busier and busier.
    | 5 Comments
  • Jan. 6, 2014, 10:47 AM
    • Best Buy (BBY -4.1%) trades weaker after hhgregg reveals that holiday sales were "significantly impacted" by the intense promotional cadence from retailers on TV and tablet products.
    • Execs with Best Buy made it clear last fall that they would try to meet the best holiday deals available in the key categories.
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  • Dec. 31, 2013, 1:07 PM
    • Gift cards are a bigger part of the earnings matrix for retailers this year with usage rising to 23.7% of all holiday spending.
    • Companies which have their fiscal quarter end in January stand a better chance of realizing gift card sales along with holiday sales, while those with a December 31 ending date could see sales slip into the next period.
    • The volume of gift card sales can also factor in to how promotional firms decide to become during the post-Christmas season.
    • Previous: Gift card sales data, Starbucks' cash cow.
    • Related stocks: BBY, HAWK, AEO, ANF, ARO, BBBY, CHS, GPS, JCP, JWN, KSS, LB, M, URBN, WSM.
    | 2 Comments
  • Dec. 30, 2013, 8:32 AM
    • Best Buy (BBY) lands on JPMorgan's list of nine "value" stocks that will outperform growth stocks in 2014.
    • The retailer is now well-positioned after winning over both consumers and mobile device manufacturers with its new store format.
    • For the value proposition, the investment firm points to BBY's 1.7% dividend yield and price-to-sales ratio.
    • BBY +0.4% premarket.
    | 1 Comment
  • Dec. 27, 2013, 9:09 AM
    • The word "guarantee" was thrown around too loosely this holiday season by retailers, writes The Dallas Mornings News' Maria Halkias.
    • While UPS (UPS) blames bad weather for falling short with some deliveries this year, the company only hired the same number of temporary workers as last year despite forecasts for booming online sales. FedEx (FDX) and the USPS also had their own glitches. The spottier-than-normal delivery record this year falls on the shoulders of the retail sector not shippers.
    • What to watch: Online retail tracking firm StellaService reports that sellers such as Zappos, Amazon (AMZN), Wal-Mart (WMT), Best Buy (BBY), and Victoria's Secret (LB) scored well in meeting aggressive deadlines, although the cost may be high. Many of the firms upgraded late-ordering customers to express shipping to avoid a customer service backlash. Next year, deadlines may be earlier and holiday margins higher.
    | 13 Comments
  • Dec. 26, 2013, 12:26 PM
    • Best Buy (BBY +1.4%) has made impressive strides with its efforts to turn the impact of showrooming by consumers at stores into a positive.
    • The company's marketing campaign and focus on higher-level customer service has helped consumer opinion on Best Buy improve markedly, according to social media tracking.
    • Despite the gains, 10% of consumers polled say the ability to sample products at Best Buy still gives an advantage to Amazon.
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  • Dec. 26, 2013, 12:12 PM
    • Gift card sales were an out-performer in the retail sector this holiday season.
    • Open network branded card sales rose 7.3% this year while retailers saw gift card sales shoot up 10, according to Corporate Executive Board.
    • The consumer trend toward more gift card usage should provide a lift to MasterCard (MA +0.8%) and Visa (V +0.3%) as well as adding at least some support to retail sales in Q1 of 2014 as sales are booked.
    • Related stocks: SBUX, BBY, HAWK, WMT, TGT, DNKN, MCD.
    | 1 Comment
  • Dec. 23, 2013, 10:41 AM
    • Best Buy (BBY +0.4%) says it will host a Christmas Eve Google+ Hangout session which will serve as one of the first tests by a big box retailer on whether or not Google's Shoppable Hangouts service could be a viable selling channel.
    • The online initiative from Best Buy falls in line with a plan to become a tech-buying adviser of sorts to consumers. This year, the blue shirts at Best Buy have been given more freedom to walk along with consumers as they shop and compare.
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  • Dec. 20, 2013, 7:06 AM
    • In a note to clients yesterday, Wedbush analyst Michael Pachter forecast more accessories sales shifted to Amazon (AMZN) this holiday season with Amazon Prime growing to an estimated membership count of 15M-17M.
    • Directly in the line of fire is Best Buy (BBY). The investment firm expects Best Buy to deliver a holiday period sales comp of 1.5% which includes a significant boost from the wave of new gaming consoles.
    • Wedbush still rates BBY at Underperform, but has taken the edge of its previous dire outlook. The 12-month price target on BBY is doubled to $18.
    | 4 Comments
  • Dec. 5, 2013, 9:54 AM
    • Conn's (CONN +12%) lifts its forecast for full-year EPS to $2.75-$2.80 from $2.50-$2.56. Same-store sales at Conn's are expected to rise 22% to 25% for the fiscal year ending January 31, 2014.
    • Best Buy (BBY -0.1%), on the other hand, has cut costs and focused its message to consumers on service and expertise. The company has stuck with electronics and mobile, but refined its selling channels.
    • Sector watch: Though Best Buy has done a fine job with its turnaround in 2013, the soaring margins and momentum at Conn's from furniture and mattress sales are hard to ignore. The retail chain also derives a good chunk of its business by offering customers favorable credit terms, a temptation that Best Buy has resisted in the past due to the risk it brings into the equation.
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  • Dec. 3, 2013, 3:43 AM
    | 3 Comments
  • Dec. 2, 2013, 9:53 AM
    • Gap (GPS +2%), Lululemon (LULU +1.9%), and Best Buy (BBY +1.2%) all trade higher after retail channel checks indicate traffic and sales were strong during the extended Black Friday weekend.
    • Old Navy showed the biggest week-over-week gain in market share, according to Placed.
    • Lululemon's customer base came out in droves and men's products performed well, notes Janney Montgomery.
    • At Best Buy, it wasn't the foot traffic that looked promising, but signs that online and mobile sales showed a significant year-over-year gain.
    • A trio of retailers which came out bruised after Black Friday on worries of lower store traffic are Coach (COH -2.2%), Macy's (M -1.4%) and J.C. Penney (JCP -3.6%).
    | 5 Comments
  • Dec. 2, 2013, 2:24 AM
    • The amount of money that consumers spent over the Thanksgiving weekend is estimated to have slipped 2.7% to $57.4B, the National Retail Federation says.
    • The drop is in contrast to estimates that Thanksgiving and Black Friday sales at brick-and-mortar stores rose 2.3%.
    • The average consumer spent $407.02 over the whole weekend, down 3.9% from last year.
    • The number of shoppers increased to 141M people from 139M.
    • The fall in spending came after retailers warned of a difficult holiday season and was due to the aggressive bargains on offer, a trend that is expected to continue.
    • However, the NRF maintained its forecast that retail sales will grow 3.9% for the whole holiday whole season.
    • Online sales climbed 17.3% on Thanksgiving and Black Friday, ComScore estimates, noting that the latter day attracted a record $1.2B in spending. The research firm expects Internet sales to rise 16% for the whole of the holiday season.
    • The most visited sites on Black Friday were those of Amazon (AMZN), eBay (EBAY) Walmart (WMT), Best Buy (BBY) and Target (TGT).
    • Total e-commerce sales hit $20.6B in the first 29 days of this holiday season, up 3.1% from last year, although this year includes more days.
    • Today is Cyber Monday, which the NRF reckons will attract 131M shoppers vs 129M last year. But as with Black Friday, Cyber Monday has started a day early, with J.C. Penney (JCP) and Macy's (M) among those who began related promotions yesterday. Target has gone further and created "Cyber Week."
    • More on Thanksgiving sales.
    • Tickers: FDO, DG, DLTR, FIVE, TGT, SHLD, BIG, GME, COH, GPS, LULU
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | 3 Comments
  • Dec. 1, 2013, 1:38 AM
    • Thanksgiving and Black Friday sales at brick-and-mortar stores rose 2.3% on year to $12.3B, ShopperTrak estimates.
    • The research firm reiterates its forecast that sales for the whole of the holiday season will increase 2.4%, the weakest growth since 2009.
    • Foot traffic for both days grew 2.8% to over 1.07B store visits.
    • Online sales +20% on Thanksgiving and +19% on Black Friday, says IBM.
    • Mobile traffic accounted for almost 40% of all online visits on Friday. Mobile sales rose to 26% of total online sales on Thursday and were around 22% on Friday.
    • Increased store openings on Thanksgiving seem to have eaten into sales on Black Friday, while online transactions again took business away from physical purchases.
    • Anecdotal evidence suggests that consumers came with plans of what they wanted to buy, with the result that there was much less impulse shopping. (PR)
    • More on Thanksgiving Black Friday sales.
    • Tickers: AMZN, EBAY, FDO, DG, DLTR, FIVE, TGT, BBY, WMT, SHLD, BIG, GME, COH, GPS, LULU, JCP, M.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
    | 17 Comments
  • Nov. 29, 2013, 3:39 PM
    • A consumer survey by Placed indicates that aggressive retailers ruled the day on Thanksgiving to give them a nice head of steam heading into the full Black Friday weekend.
    • The dollar store group (FDO, DG, DLTR, FIVE) in particular appears to have picked up some needed market share.
    • In a mild surprise, Target (TGT) only ranked as the 6th most visited retailer behind some discounters and Best Buy (BBY), according to the latest data crunch
    • Biggest week-over-week market gains by major retailers: 1. Kmart (SHLD) 2. Toys 'R' Us 3. Wal-Mart (WMT) 4. Big Lots (BIG) 5. Family Dollar.
    • Full report from Placed.com
    | 4 Comments
  • Nov. 29, 2013, 11:50 AM
    • Ignore the media reports of lines wrapping around city blocks for Best Buy (BBY +1.4%) this Black Friday and focus on the retailer's integrated in-store and e-commerce initiatives, say retail watchers.
    • Though shares of BBY have ripped the second-highest gain in the S&P 500this year, they still have fresh legs due to the company's significant supply chain improvements and cost control measures this year.
    • What to watch: Amazon and Wal-Mart are still taking market share from Best Buy in key categories, but due to CEO Hubert Joly's deft hand the retailer is improving its bottom line quicker than its peers.
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Company Description
Best Buy Co Inc Best Buy Co Inc is a retailer of technology products, including tablets and computers, televisions, mobile phones, large and small appliances, entertainment products, digital imaging and related accessories.
Sector: Services
Country: United States