Best Buy Same Store Sales Drop; Consumers Still Remain Cautious

Best Buy’s mixed fourth quarter results show the consumer is still cautious, despite over a year of low gas prices.
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Best Buy’s (BBY) mixed fourth quarter results show the consumer is still cautious, despite well over a year of low gas prices. The electronics giant reported a 1.8% decline in quarterly same store sales in the U.S., and a 4.2% drop in revenue. Stewart Warther, a U.S. equity and derivatives strategist at BNP Paribas, said consumers mostly saved the stimulus from low gas prices in 2015, with the exception of fourth quarter. Though if earnings are any indication, consumers spent less on electronics and more on home improvements, as illustrated in Home Depot’s (HD) strong fourth quarter results released earlier this week. TheStreet’s Scott Gamm has details from Wall Street.