Still, shares fell 5% in Tuesday morning trading
as Best Buy warned that sales could slow down
during the current quarter as the number of
virus cases surge.
“As we start the fourth quarter, the demand
for the products and services we sell remains
at elevated levels, but similar to last quarter, it
continues to be difficult for us to predict how
sustainable these trends will be,” Matthew
Bilunas, Best Buy’s chief financial officer, told
analysts during the call. “In fact, we are seeing
COVID cases surge throughout the U.S. and
Canada at a time of significant holiday volume
through our stores, online and supply chain. “
Bilunas also noted other factors such as
potential government stimulus, the risk
of continued high employment and the
availability of inventory like computers to
match customer demand.
Best Buy joins big box stores like Walmart,
Target, Home Depot and Lowe’s in reporting
strong fiscal results. Unlike mall-based stores
and other businesses that sell non-essentials, big
box retailers were allowed to stay open during
the lockdown in the spring and have all seen
their dominance increase as consumers focus on
necessities and home-related activities.
Before the pandemic, Best Buy had expanded its
services to such options as at-home consulting
and same-day delivery. It also sped up its
online shipping. But the pandemic has forced
Best Buy to adjust its operations and launch
new shopping experiences that provide more
convenience and safety for customers.
Early fall, Best Buy began using 250 of its stores
as fast-shipping hubs for online orders. It’s now