Best Buy Eyeing $50 Billion in Revenue, $1 Billion in Cost Cuts By 2025

Best Buy is projecting strength and growth heading into an investor event Sept. 25 in New York.

The consumer electronics retail giant’s “Building the New Blue: Chapter Two” under new CEO Corie Barry includes revised financial targets through 2025.

The company plans to trim $1 billion in costs over the period, while boosting revenue to $50 billion, up from 2020 guidance of $43.1 billion to $43.6 billion.

Heady goals in a retail environment under constant siege from ecommerce giants such as Amazon and Walmart, among others.

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Indeed, Best Buy last month revised downward fiscal-year revenue estimates — largely due to ongoing tariff concerns with China.

The company, like most CE retailers and manufacturers, relies in large part on Chinese-made products, including its line of Insignia TVs.

Second-quarter entertainment same-store sales dropped 13.7% compared to a 8.5% increase a year ago. The business unit includes DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software.

Domestic entertainment revenue topped $441 million, down from $608 million during the previous-year period. The segment represented 5% of Best Buy’s domestic revenue compared to 7% last year. Best Buy closed 13 large format stores in the period.

Regardless, CFO Matt Bilunas remains optimistic.

“In this next chapter, our focus continues to be top-line growth,” Bilunas said in a statement. “We also believe the initiatives we will outline today … along with continued focus on cost reductions, will result in operating income rate expansion over the five-year time frame.”

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