CEO transition plan
Consumer electronics retailer Best Buy (BBY) announced on April 15 that Corie Barry, the company’s chief financial and strategic transformation officer, will succeed Hubert Joly as the CEO of the company, effective at the annual shareholder meeting scheduled on June 11. Hubert Joly, Best Buy’s chair and CEO, will then assume the position of executive chair of the board of directors. Best Buy announced these changes as part of its succession plans.
Hubert Joly joined Best Buy in 2012 and was instrumental in improving the company’s performance through the Renew Blue transformation strategy. Best Buy survived through a very challenging retail environment, while several traditional electronic retailers filed for bankruptcy amid intense rivalry from Amazon (AMZN). Hubert Joly also introduced the company’s new strategic program, Best Buy 2020: Building the New Blue in 2017.
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Best Buy also announced that Corie Barry would join the board of directors. Barry, who joined Best Buy in 1999, served as the company’s chief strategic growth officer before being promoted as the company’s CFO in 2016. Best Buy is searching for an internal or external candidate who will succeed Barry as CFO once she assumes the role of CEO. Best Buy also promoted Mike Mohan, its US chief operating officer, as president and COO of the company.
As of April 15, Best Buy stock was up 38.3% on a year-to-date basis compared to a 15.9% rise in the S&P 500 Index. Best Buy stock has a “hold” recommendation from 18 (or 69%) out of 26 analysts covering the retailer. Seven analysts have a “buy” recommendation, while one analyst has a “sell” rating.
As of April 15, the average 12-month price target for Best Buy stock was $76.63, which implies an upside of about 5%. Following the announcement of the CEO succession plan, Best Buy stock fell 0.4% on April 15.