Company Sets Financial Targets for Fiscal
2025
Best Buy Co., Inc. (NYSE:BBY) will host an investor update this
morning to highlight the progress it has made on its Building the
New Blue growth strategy, detail how it plans to move forward with
the strategy and discuss the company’s long-term financial
outlook.
Best Buy CEO Corie Barry and other members of the executive team
will outline the next phase of the company’s strategy, called
Building the New Blue: Chapter Two. They will also provide a closer
look at key growth initiatives, including Best Buy Health and an
ongoing supply chain transformation.
“Our Building the New Blue strategy is the right one, and it’s
working,” Barry said. “We are excited about what we have
accomplished so far, and we believe we will continue to enrich our
customers’ lives through technology and unlock profitable growth as
we execute on the next chapter of this strategy.”
To support its Building the New Blue: Chapter Two strategy, Best
Buy will invest to drive top- and bottom-line growth while
remaining committed to continuing to create efficiencies that help
fund these investments and offset potential pressures.
Today, Best Buy is setting financial targets for fiscal
2025:
- Enterprise revenue of $50 billion, which compares to the
company’s current fiscal 2020 guidance of $43.1 billion to $43.6
billion
- Non-GAAP operating income rate of 5.0%, which compares to the
company’s current fiscal 2020 guidance of flat to slightly up from
fiscal 2019’s 4.6% non-GAAP operating income rate1
- $1 billion of additional cost reductions and efficiencies
Best Buy Chief Financial Officer Matt Bilunas commented, “In
this next chapter, our focus continues to be top-line growth. We
also believe the initiatives we will outline today, along with a
continued focus on cost reductions, will result in operating income
rate expansion over the five-year timeframe.”
In addition to Barry and Bilunas, Best Buy’s speakers will
include:
- Mike Mohan, president and chief operating officer
- Asheesh Saksena, president, Best Buy Health
- Rob Bass, chief supply chain officer
The event will begin at 10 a.m. Eastern Time. A video webcast of
the presentations and question-and-answer session will be available
online at www.investors.bestbuy.com, both live and after the event.
Additionally, presentation materials will be available online,
starting approximately 15 minutes before the event begins.
Notes:
(1) For “GAAP” and “non-GAAP” definitions and reconciliations,
please see the financial schedules on the company’s investor
relations website at www.investors.bestbuy.com. The fiscal 2019
GAAP operating income rate was 4.4%. A reconciliation of projected
non-GAAP operating income, which is a forward-looking non-GAAP
financial measure, to the most directly comparable GAAP financial
measure, is not provided because the company is unable to provide
such reconciliation without unreasonable effort. The inability to
provide the reconciliation is due to the uncertainty and inherent
difficulty predicting the occurrence, the financial impact and the
periods in which the non-GAAP adjustments may be recognized. GAAP
operating income may include the impact of such items as
restructuring charges, litigation settlements, goodwill
impairments, and certain acquisition-related costs. Historically,
the company has excluded these items from non-GAAP operating
income. The company currently expects to continue to exclude these
items in future disclosures of non-GAAP operating income and may
also exclude other items that may arise (collectively, “non-GAAP
adjustments”). The decisions and events that typically lead to the
recognition of non-GAAP adjustments, such as a decision to exit
part of the business or reaching settlement of a legal dispute, are
inherently unpredictable as to if or when they may occur. For the
same reasons, the company is unable to address the probable
significance of the unavailable information, which could be
material to future results.
Forward-Looking and Cautionary Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
as contained in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that reflect
management’s current views and estimates regarding future market
conditions, company performance and financial results, operational
investments, business prospects, new strategies, the competitive
environment and other events. You can identify these statements by
the fact that they use words such as “target,” “anticipate,”
“believe,” “assume,” “estimate,” “expect,” “intend,” “foresee,”
“project,” “guidance,” “plan,” “outlook,” and other words and terms
of similar meaning. These statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the potential results discussed in the forward-looking
statements. Among the factors that could cause actual results and
outcomes to differ materially from those contained in such
forward-looking statements are the following: competition
(including from multi-channel retailers, e-commerce business,
technology service providers, traditional store-based retailers,
vendors and mobile network carriers), our expansion strategies, our
focus on services as a strategic priority, our reliance on key
vendors and mobile network carriers, our ability to attract and
retain qualified employees, changes in market compensation rates,
risks arising from statutory, regulatory and legal developments,
macroeconomic pressures in the markets in which we operate, failure
to effectively manage our costs, our reliance on our information
technology systems, our ability to prevent or effectively respond
to a privacy or security breach, our ability to effectively manage
strategic ventures, alliances or acquisitions, our dependence on
cash flows and net earnings generated during the fourth fiscal
quarter, susceptibility of our products to technological
advancements, product life cycle preferences and changes in
consumer preferences, economic or regulatory developments that
might affect our ability to provide attractive promotional
financing, interruptions and other supply chain issues,
catastrophic events, our ability to maintain positive brand
perception and recognition, product safety and quality concerns,
changes to labor or employment laws or regulations, our ability to
effectively manage our real estate portfolio, constraints in the
capital markets or our vendor credit terms, changes in our credit
ratings, any material disruption in our relationship with or the
services of third-party vendors, risks related to our exclusive
brand products and risks associated with vendors that source
products outside of the U.S., including trade restrictions or
changes in the costs of imports (including existing or new tariffs
or duties and changes in the amount of any such tariffs or duties)
and risks arising from our international activities.
A further list and description of these risks, uncertainties and
other matters can be found in the company’s annual report and other
reports filed from time to time with the Securities and Exchange
Commission (“SEC”), including, but not limited to, Best Buy’s
Annual Report on Form 10-K filed with the SEC on March 28, 2019.
Best Buy cautions that the foregoing list of important factors is
not complete, and any forward-looking statements speak only as of
the date they are made, and Best Buy assumes no obligation to
update any forward-looking statement that it may make.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190925005161/en/
Investor Contact: Mollie O’Brien (612) 291-7735 or
mollie.obrien@bestbuy.com
Media Contact: Jeff Shelman (612) 291-6114 or
jeffrey.shelman@bestbuy.com
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