That slump added to significant declines so far in 2020, with the stock down 37% though early April.
Its position as a consumer-facing retailing business didn't help Best Buy during the aggressive social-distancing efforts that swept through Europe and North America last month. Investors fled most stocks in the industry on fears of a dramatic sales decline in the wake of COVID-19's spread. In fact, Best Buy effectively closed its stores to shoppers, choosing to move to a pickup-only selling model for the time being.
CEO Corie Barry and her team said on March 21 that sales were running "ahead of plan" through mid-March. But the shift in operating posture still convinced management to withdraw its fiscal year guidance while moving to preserve capital, including by fully drawing down its $1.25 billion revolving credit line.
That initiative gives the retailer plenty of flexibility to weather any temporary growth slowdown. But it isn't yet clear exactly how deep that economic slump will be, or when Best Buy will reopen its stores.