Best Buy (BBY) announced its CEO succession plan on April 15. Hubert Joly will relinquish his role as the CEO of the company, effective as of the annual shareholder meeting on June 11, and will be succeeded by Corie Barry, who is currently serving as chief financial and strategic transformation officer of Best Buy. Barry joined Best Buy in 1999 and was named CFO in 2016. The company believes that her vast experience with the company, especially during the turnaround period, will help her to continue the company’s growth momentum.
Best Buy’s revenue rose 1.7% to $42.9 billion in fiscal 2019, which ended on February 2. Best Buy delivered same-store sales growth of 4.8% in fiscal 2019 driven by the growth of 4.8% and 4.6% in the same-store sales of its domestic and international segments, respectively. Best Buy’s adjusted EPS increased to $5.32 in fiscal 2019 compared to $4.42 in fiscal 2018. Best Buy’s successful execution of its Renew Blue strategy and the initiatives under its existing strategic plan, Best Buy 2020: Building the New Blue, are helping the consumer electronics retailer perform well in a highly competitive environment.
In February, Best Buy forecasted its fiscal 2020 revenue to be in the range of $42.9 billion to $43.9 billion and same-store sales growth to be in the range of 0.5%–2.5%. The company’s top line in the current fiscal year will likely be impacted by the anticipated cyclical slowdown in the console gaming category and the mature phase of the mobile phones category. Best Buy expects its fiscal 2020 adjusted EPS in the range of $5.45–$5.65.
Analysts expect Best Buy’s revenue to rise 1.5% to $43.5 billion in fiscal 2020 and adjusted EPS to grow 6.0% to $5.64. Best Buy is looking for growth in categories like smart home technology and the services business. However, investments in supply chain and other growth initiatives, as well as higher transportation costs, might put pressure on the bottom line in the current fiscal year.