Best Buy (BBY) reported earnings today, and they beat estimates. Typically, I'm not a huge fan of retailers. Smaller margins, very competitive, and sales can cycle based on health of the consumer. Especially this type of retailer, which relies on consumers' discretionary income. But Best Buy defies all of this typical logic, and performs well. They are continually growing, while at the same time rival Circuit City(CC) is losing money. Best Buy has a lot of cash, and according to the conference call, they will look to either up their buyback of stock, or make some acquisitions. I think this company is positioned well right now.
Two additional things that interested me in the conference call:
1) They will carry Apple Computers in 200 of their stores this year
2) Sales of flat-panel televisions continued double-digit growth
The concern out there is that margins will shrink as larger retailers like Wal-Mart (WMT) are trying to capture some of the flat-panel television market. This is one of the reasons that the stock declined today.
I think Best Buy is a good investment, and would be interested in scooping up some shares if we see any short-term drops in share price.
Also, here's a great article about Best Buy written by The Street.com's Marc Lichtenfeld.