Best Buy Tumbles After CEO Warns That Good Times May Not Last
- Joly warns that the rosy results won’t be the new normal
- Some products ‘inexorably’ moving to competitors, analyst says
Consumer Edge Analyst Says Best Buy Is Doing a Lot Right
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Best Buy Co. suffered its worst stock decline in more than a year after Chief Executive Officer Hubert Joly warned that recent sales gains probably aren’t sustainable, renewing concerns that Amazon.com Inc. will threaten its business.
Comparable-store sales rose 5.4 percent last quarter, the company said Tuesday, fueled by demand for wearable devices and smart home systems. That was more than twice what analysts had predicted. Earnings also topped projections, and the company raised its outlook for full-year profit and sales.