19 Jan

Best Buy CEO transforms the company for the better

WRITTEN BY Sharon Bailey

Strong leadership

Best Buy (BBY) CEO, Hubert Joly, has played a crucial role in the company’s turnaround. Joly assumed the role of CEO in September 2012, when Best Buy was immersed in problems ranging from rapidly declining sales, intense competition from online retailers such as Amazon.com (AMZN), and the scandalous departure of former CEO Brian Dunn on allegations of inappropriate conduct. Also, there was a buyout attempt by the founding chairman.

Best Buy CEO transforms the company for the better

Impressive background

Before being appointed Best Buy CEO, Hubert Joly was credited with turning around two other companies—Carlson Wagonlit Travel and then its parent company, Carlson Company, a restaurant and hotel operation. Joly was Carlson’s first non-family CEO and was instrumental in improving the financial position of the company. Joly repositioned Carlson’s core brands and expanded the company’s business in emerging markets.

Best Buy’s stock has appreciated by 111% since Joly took over the reins of the company.

The S&P 500 SPDR ETF (SPY), the Consumer Discretionary Select Sector SPDR Fund (XLY), and the iShares Core S&P 500 ETF (IVV) are certain ETFs with holdings in Best Buy and some of its rivals.

Reviving Best Buy

Joly took over the reins of Best Buy from the company’s interim CEO, Mike Mikan. The company’s former CEO, Brian Dunn, resigned in April 2012 following allegations of an inappropriate relationship with an employee. Joly’s main priorities were to provide stability to the firm and address the declining same-store sales stemming from competition from online retailers.

In the next part of this series, we’ll look at how Joly transformed the company with a turnaround strategy he called “renew blue.”

Online retailers, primarily Amazon, have been eating away the market share of retailers like Best Buy, Wal-Mart Stores (WMT), Target (TGT), RadioShack (RSH), and J.C. Penney (JCP) across several product categories.

Latest articles

Snap (SNAP) stock fell 3.29% in the after-hours trading on Tuesday even though it reported upbeat third-quarter earnings results.

Shopify (SHOP) stock has gained a lot of attention lately. On October 22, the stock fell around 6.3% to below the $300 level.

Stocks of high-growth tech companies ServiceNow (NOW) and iRobot (IRBT) have lost considerable value in pre-market trading today.

Tesla CEO Elon Musk expects its self-driving cars to hit the road by 2020. However, Zoox CTO Jesse Levinson believes that Musk could miss this deadline.

HEXO (HEXO) will report its fourth-quarter earnings before the market opens on Thursday. There has been a lot of pessimism surrounding the stock.

Boeing reported its third-quarter earnings results on October 23. Its revenue met analysts’ expectations, but its EPS from core operations dropped.