Why Best Buy Stock Jumped This Week
Best Buy (NYSE: BBY) stock outperformed the market this week by rising 15% compared to a 0.5% drop in the S&P 500 through Thursday trading, according to data provided by S&P Global Market Intelligence. The retailer announced holiday season earnings results that showed stress on the business from supply chain challenges. That bad news was outweighed by a bright long-term forecast for sales and cash returns.
Best Buy's comparable-store sales fell 2% through the holiday season quarter. That result put the chain at the low end of the outlook that management had issued back in late November.
However, investors still considered it a success considering the company had to reduce some store hours due to surging COVID-19 cases. CEO Corie Barry and her team also cited "constrained inventory" as a key pressure on sales through January.
Source Fool.com
