Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the decline in stock for Best Buy following fourth-quarter earnings.
Video Transcript
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JULIE HYMAN: Let's talk about some other earnings though. Best Buy earnings beat estimates in its latest quarterly report. But the retailer offered a lower than expected outlook for the year. It expects continued pressure on macro and industry backdrop. So pretty much what we've heard from most of the retailers, right?
I mean, we've-- Walmart, Target, Home Depot, Lowe's, all of them-- most of them had relatively good quarters and now are saying that the year is going to be tougher. So that seems to be what is continuing to happen.
The CFO of the company saying in a statement, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers.
BRAD SMITH: Said everybody, whether it was Target, whether it's their, of course, competitor Walmart in talking about how electronics-- and we've seen that slippage in electronics even going back to the midpoint of last year where that slippage started to commence because many people who either had the television that they wanted or had perhaps the sound system that they wanted in their home-- this directly impacts a Best Buy head-on and really generates this larger question of, OK, when is that next cyclical or hypercycle for consumers to be able to or want to buy back into a different type of home technology experience?
And in that near-term and interim period, where can Best Buy not just slash prices on the inventory that they do have to churn through that but also ensure that at the end of the day, they're still operating and staying in the black and not just falling into negative margins at the end of the day too? So I think in operating the square footage, the capacity that they have, that's difficult to do when you've got a company with as much overhead as they do.
JULIE HYMAN: Yeah.
