Morningstar Rating

Stock Research and Analysis

by R.J. Hottovy, CFA

Bulls Say

Best Buy has cut more than $1 billion from its annual cost structure through space redesigns, operating cost reductions, and is targeting another $400 million in operating income improvement through improved returns/replacements/damages processes and other operational efficiencies.
Best Buy has re-engineered its online platform, improving the user experience and facilitating greater ship-from-store fulfillment capabilities (now offered in 1,400 stores).
New television, smartphone, tablet, and gaming technology innovations can provide periods of top-line outperformance. Read more 

Bears Say

Mass merchants, warehouse clubs, online retailers, and consumer product OEMs all vie for market share, resulting in increased price competition and limiting longer-term margin expansion opportunities.
Entertainment software sales remain on a downward trend. Replacement categories in stores tend to be slower-turning, lower-margin products.
Warranty sales have historically been a disproportionate contributor to margins. If consumers gravitate to rival consumer electronics retailers or make more purchases online, profitability could take a hit from lost warranty sales. Read more 

Management

Hubert Joly was named president and CEO and appointed to the board in August 2012. Before taking the reins at Best Buy, Joly was CEO of hospitality/travel company Carlson and also held executive roles with Vivendi's video game business unit, Electronic   Read more 

Profile

Best Buy is the largest U.S. consumer electronics retailer, with its product sales representing 16% of the $217 billion market in fiscal 2015 using estimates from the Consumer   Read more 

Markedet så på gode USA-arbeidstall på en dårlig måte 
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