Comp-store sales results fell 1.7% and revenue declined 4.2% year on year. However, the company topped earnings per share estimates, instituted a $1 billion share repurchase plan, issued a special dividend of 45 cents per share and talked optimistically about a strong second half to 2016.
On CNBC's "Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said the earnings were not as bad as many feared. The fact the company is talking about the second half of the year being strong, especially a company that sells smartphones, suggests to him management is being bullish on Apple's (AAPL) - Get Report iPhone 7, which will likely be announced in September.
All in all, the "read-through" from Best Buy is better than expected, he said, while also pointing out that shares of Walmart (WMT) - Get Report are now above pre-earnings levels, despite what many investors deemed as a "so-called bad quarter."
The stock now yields 4.4% -- a level that many other stocks have found support at, Cramer said. Kohl's is closing underperforming locations and the stock has gotten oversold, much like Macy's (M) - Get Report shares. Kohl's "will be okay," and Cramer also expects a rebound in Lowe's (LOW) - Get Report .
At the time of publication, Cramer's Action Alerts PLUS had a long position in AAPL.