Dive Brief:

• Best Buy was one of the few retailers making investors happy Tuesday after reporting quarterly sales results that beat expectations. The retailer's stock was up 15.31% about 30 minutes after the markets opened on Tuesday.  

• Q2 revenue rose .8% to 8.53 billion, compared with the average analyst estimate of beating estimates of a 2% drop to $8.29 billion, and same-store sales rose 2.7%.

• The company has left China and has seen rising demand for electronics like televisions and household appliances with increased job growth in the U.S.

Dive Insight:

Best Buy’s China exit is looking especially prescient these days, as that country’s economic woes seem worse than previously thought. 

But the bigger news is that the company’s turnaround moves initiated by CEO Hubert Joley—which have included cost-cutting measures, improved omnichannel efforts, and a store-within-stores strategy—seem to be paying off, with an assist by an improving U.S. economy and job growth.

The jitters on Wall Street yesterday seem to be settling down, though the effects of slower growth in China will likely still fan out across the globe, especially to countries like Brazil that are most dependent on growth there. 

“As we look forward, while we are cognizant of the recent financial market turbulence, we believe the combination of an opportunity-rich environment and the strength of our competitive advantages leads us to have a positive outlook about our future prospects, starting with the important back-to-school third quarter.” said Joly in a statement.

And retailers, many of which have close ties to China from both the manufacturing and consumer sides, are unlikely to escape the changing economic landscape there. Still, Best Buy appears to be making the right moves, with more 90% of its sales now taking place in the U.S.