Updated from 8:34 a.m. EDT
NEW YORK ( TheStreet) -- Best Buy ( BBY) wasn't expected to light it up financially in the second quarter as sluggish demand for mobile phones and tablets weighed on results. Even considering Wall Street's low expectations, Best Buy's results were still a disappointment.
Watch the video below for a closer look at Best Buy's latest quarterly results:
Best Buy shares fell 5.1% to $30.35 in midday trading on Tuesday. But Wall Street may be underestimating the company's financial potential during the all-important holiday season as it implements initiatives designed to improve customer service.
The electronics retailer reported adjusted earnings of 44 cents a share vs. the Bloomberg consensus of 31 cents, marking the seventh straight quarter that Best Buy eclipsed Wall Street forecasts. However, despite domestic online sales growth of 22%, which followed a 29.2% increase in the first quarter, net sales of $8.9 billion fell short of the consensus of $8.98 billion. The culprit for the shortfall was a 2.7% decline in same-store sales, which came in 50 basis points below Wall Street's estimates.
Domestic and international same-store sales declined 2% and 6.7%, respectively, with President and CEO Hubert Joly noting "traffic to our brick and mortar stores continued to decline."
Watch More: How DineEquity's CEO is Transforming IHOP and Applebee's