Yahoo Finance Why Best Buy Stock Lost 17% in August
What happened
Best Buy (NYSE: BBY) stock trailed the market last month, shedding 17% compared to a 2% decrease in the S&P 500, according to data provided by S&P Global Market Intelligence.
The decline wasn't enough to knock shares from their wider 2019 gains, with returns still surpassing 20% so far this year.
Image source: Getty Images.
So what
Investors pushed shares lower in August in response to a mixed second-quarter earnings report. The consumer discretionary retailer announced growth near the low end of management's expectation but saw profitability edge higher. Yet investors were more concerned with comments from executives that suggested weakening demand heading into the back half of the fiscal year.
Now what
CEO Corie Barry and her team noted rising uncertainty about buying behavior in the coming months given rapidly changing tariff expectations. These issues might pressure sales this fiscal year, but are likely to resolve themselves into 2020 as the company works to preserve the positive momentum it has built up around key product niches like consumer electronics and appliance sales.
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Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
