Is Best Buy pulling a Radio Shack?

[oddballstocks]

I have very loosely followed Best Buy over the past year, mostly through investors who trumpet some stats and say they're too cheap to ignore.

 

I saw this article this morning: http://finance.yahoo.com/news/best-buy-shutter-50-big-120457157.html

Here's a different article saying they'll be selling phones: http://www.forbes.com/sites/abrambrown/2012/03/29/death-of-best-buys-big-box-store-company-will-shift-to-new-model-close-50-existing-stores/?partner=yahootix

 

Looks like revenue is dropping and BBY is trying to re-tool their strategy to be mobile stores.  This sounds really similar to what Radio Shack did, they abandoned their core business and went mobile.  Granted this seemed to work out fine, no one's buying CB radios anymore and cell phones are big. 

 

I guess my question is what do people think of this, is BBY a value trap, or is this a sustainable strategy?

[dcollon]

Best Buy's revenue is actually not dropping it's growing slightly and it's growing nicely on a per share basis.  This obviously can change quickly.

 

The release they put out this morning has good details for those that are interested in reviewing the quarter/year.

 

 

[Guest Hester]

Best Buy's revenue is actually not dropping it's growing slightly and it's growing nicely on a per share basis.  This obviously can change quickly.

 

The release they put out this morning has good details for those that are interested in reviewing the quarter/year.

 

BBY's revenue at stores that have been open for a year or more is, and has been, falling. Down 2.4%, and BBY said they expect this figure to be down 2-4% in fiscal 2013. Revenue is only growing because of store openings which are over on the big box side of the business.

 

[dcollon]

I understand your point Hester.  I was simply stating that the top line is not declining, although it might in the near future.

 

Comp sales are certainly worth looking at for any retailer.