Best Buy Gains As Improved FY Guide Beats Consensus

Watch Best Buy Gains As Improved FY Guide Beats Consensus - Bloomberg on Dailymotion

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00:00This goes back to the bread and butter for Best Buy, which is it's seeing strong iPhone sales and

00:04it's also seeing strong computer-related sales too. Exactly. So we have seen strength in computing

00:10now for over a year. Windows 10 is no longer going to be supported, so we're seeing even more

00:16upgrades this year and that growth could continue into next year. Also gaming, the new Nintendo

00:22Switch 2 is out and phones, as you mentioned, those categories are really supporting growth

00:27for Best Buy. What did we learn from the company when it comes to setting expectations for this

00:32holiday shopping season? Because it's great to be doing well in the third quarter, but the fourth

00:36quarter is where it really makes its money. Exactly. The fourth quarter is the big one of

00:42the year. Third quarter came in well ahead of expectations, and I think that the guidance

00:47for the fourth quarter is rather conservative. They're setting the bar pretty low, expecting

00:53sort of a deceleration in growth, but that might not happen. They are well prepared for this holiday

00:59season. They're leaning into promotions, which worked last year. They do face slightly tougher

01:05comparisons, but I think that demand is meaningfully stronger than a year ago on that resilient

01:12consumer, and that could support continued growth. All right. And I mean, who is Best Buy's biggest

01:17competitor at this point? I remember the days of Circuit City. That company is no longer around.

01:21Is it just Amazon? Amazon is a major competitor, and given Best Buy's recent launch into Marketplace,

01:29they really are trying to broaden that assortment and cater to all that customers are looking for

01:35and making sure that Best Buy is a top choice, no matter what you're shopping for, not just

01:39electronics. All right. Fantastic. Any other earnings that you're keeping an eye out on in your area

01:44in terms of retailers, or have we pretty much seen what we needed to see?

01:48My laggards are, I have Ulta Beauty in early December, so that's a key one to watch. They,

01:55you know, are going through their own little bit of a transformation after losing some market share

01:59last year, so that's one to watch. And self-gifting is obviously huge for the holiday, so they could see

02:06a little bit of a pickup in the fourth quarter with people looking to treat themselves.