Best Buy (NYSE: BBY) isn't done feeling the impact of its pandemic growth hangover. Sales fell at a double-digit rate in the selling period that ended in late July, in fact, and profitability dove compared to soaring results a year earlier.

The retailer might also be facing some inventory challenges heading into the critical holiday shopping season that will pressure earnings even more in late 2022. But can investors safely look past these issues toward a brighter long-term growth outlook for the leading consumer electronics retailer?

You don't have to search hard to find evidence of a poor selling environment in the consumer electronics space. After sales jumped 20% in the second quarter of fiscal 2022, Best Buy gave much of that spike back in fiscal 2023. Revenue in the second quarter (which ended July 31) fell 12.1% year over year, with the computing and consumer electronics segments shrinking the fastest. The appliances division fared the best, but even that niche fell 1% compared to a 31% spike a year ago.

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Source Fool.com