One of the most unexpected retail stocks blasted off today, gaining over 20% on the day. The stock was Best Buy (NYSE: BBY) which is an electronics store chain here in the states. The company reported their earnings and all metrics were well beyond Wall Streets expectations. To put it in perspective, sales were up between 1.4% and 1.6% and the best and brightest analysts had figured a sales decrease of 2.5%. This is the type of shock that is rarely seen in this name and certainly not something that has happened in some time.
One of the interesting metrics was Best Buy's online sales. In an era where everyone thinks Amazon (NASDAQ: AMZN) is killing the competition it seems that Best Buy has found a way to compete. Internet sales were up a whopping 22.5%, and now accounts for over $1 billion in annual sales. One area that has been strong for the retail chain, online and in store has been in the gaming space. Other names in the gaming space have also seen growth due to the rapidly growing "gaming as a sport" sector.
In addition, while other retail stores have blamed late tax refund checks as their excuse for missing earnings, Best Buy actually said that part of their strong growth last quarter was at the tail end of the quarter due to those late refund checks. They also said that the momentum from late refund checks was just beginning and will likely spill over into the following earnings release.
Investors went absolutely crazy over the news. Shares started the day up over 13% and as the day progressed the bulls appetite only grew. Shares closed the day up 21.48%, ending at all time highs along with the Nasdaq and S&P. Just like the markets, Best Buy seems in a never ending uptrend that was only magnified by today's good news.