Best Buy (BBY) reported a better than expected quarter this morning and the stock is currently +7% in the premarket. Note that I said “better than expected” not good. BBY comps were -10.4% – better than the “slightly more than 12.1% decline” they guided to last quarter. EPS was -34% – though operating margin of 3.9% was better than expected.
I’m surprised BBY isn’t seeing the weakness Target (TGT) reported last week as it is a pure consumer discretionary play. But I suspect this is only a reprieve as it’s hard to imagine that BBY is immune from the inflationary forces and economic contraction squeezing consumers. The macro forces in play will surely catch up with BBY soon enough making this is a good selling opportunity if you are trapped long or want to short.