Best Buy Co., Inc. (BBY): What Do You Need To Know?

For Best Buy, though, the potential could be much higher, as it could bring in more traffic not just for smartphone purchases but for its other merchandise.

Best Buy Co., Inc. (NYSE:BBY) has also made some strategic moves during the quarter to refocus on its core business. Less than a month ago, it sold its 50% stake in the Best Buy Europe joint venture to partner Carphone Warehouse, raising about $775 million in cash and eliminating the distraction of having to deal with the chain in a tough economic environment in Europe right now.

Another long-awaited boost could come if the proposed federal Internet sales-tax bill becomes law. Amazon.com, Inc. (NASDAQ:AMZN), eBay Inc (NASDAQ:EBAY), and other online retailers without physical presences in many states have had a big advantage over Best Buy, and given the high-ticket items that Best Buy sells, closing the sales-tax gap will make the substantial savings from showrooming disappear if the measure passes.

In Best Buy’s report, watch for comments from management on how its recent initiatives are bearing fruit with real financial improvements. As good as the plan’s proposals sound, it’s important for the company to point to tangible results to prove that Best Buy is actually moving in the right direction.

The article Best Buy: It’s Getting Better, But for How Long? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Apple. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Amazon.com, Apple, and eBay.

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