Earnings Recap – November 23rd
Best Buy, the retailer where you can find all your favorite tech products, reported their third quarter earnings before the market opened on Tuesday. Earnings per share was $2.08, beating the expectation of $1.95, and revenue beat by the same margin too. However, Best Buy saw a rise in costs as electronics became expensive this quarter, and a unique problem arose thefts. Best Buy CEO Corie Barry said that the company faced a spike in organized thefts that left employees traumatized, and this was seen at other stores too. As a result, Best Buy saw a major drop in its share price, although this could be a great time to buy low.
Nordstrom announced their 2021 third quarter results after the bell on Tuesday. They missed earnings estimates of 56 cents with 39 cents but beat revenue estimates of $3.55 billion with $3.64 billion. Labor costs grew more than expected, eating into profits, and the Nordstrom Rack segment of the business delivered less than analysts expected. This came as a contrast to other department stores like Kohl’s and Macy’s, who both excelled this quarter, signalling that Nordstrom might be falling behind. This was a major cause for Nordstrom losing nearly a quarter of its share price after hours, which looks to be trouble.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.