Investopedia: Best Buy Needs To Tune Out The Haters

Much to the chagrin of a lot of shorts, hedge funds and commentators, Best Buy (NYSE:BBY) stubbornly refused to go out of business this past quarter. That's hyperbole, of course, but perhaps not by much - there is no shortage of commentary out there saying that Best Buy is utterly doomed, needs to close stores and/or start subletting space in order to survive. (Learn more in The 4 R's Of Investing In Retail.)


While it is true that Best Buy is indeed going through some hard times and it likewise true that consumer buying preferences have changed, a panicked attempt to pacify institutions is not what the company or its shareholders need. Best Buy is still producing positive cash flow has not yet reached a point of no return.

Challenging and Disappointing Second Quarter Results
That is not to say that Best Buy is doing well, as it clearly is not. Revenue was flat for this quarter (the company's fiscal second quarter) despite a nearly 3% decline in comp-store sales. Although domestic sales were down (down 1.5% on a 2.7% comp decline), international sales rose 4.6% despite a greater-than-3% decline in comps.



Read more at the link below:
http://stocks.investopedia.com/stock-analysis/2011/Best-Buy-Needs-To-Tune-Out-The-Haters-BBY-HGG-RSH-WMT-COST-GME-AAPL0915.aspx