Best Buy forecasts 2021 earnings largely below estimates

Best Buy forecasts 2021 earnings largely below estimates”

At the Minneapolis-based retailer's Investor Day on Tuesday, its first in five years, executives laid out a new strategy of priorities and changes in its merchandising, training and marketing over the next three years.

Best Buy, which plans to offer an improved checkout experience and more training of associates this holiday season, is also expanding its Total Tech Support offering, which provides in-house electronic support 24/7, regardless of where a product was originally purchased.

The electronics retailer is aiming for annual revenue of $43 billion for fiscal 2021, a 9 percent increase from fiscal 2017, which was the final year of the turnaround effort the company referred to as its "Renew Blue" transformation. Best Buy delivered $1.4 billion in cost savings over the last five years.

The company said it expected adjusted earnings of $4.75 to $5.00 per share for the fiscal year ending January 2021.

Best Buy has had four years of positive same-store increases.

With this forecast, Best Buy is reaffirming that its strong second-quarter performance, which featured comparable-sales growth of 5.4%, will not be the new normal.

Best Buy has been a bright spot in the gloomy USA retail environment.

While many retailers are struggling with weak store traffic and slumping profits, Best Buy sees myriad opportunities in the coming years to expand its business. The success of smart speakers like Amazon's Echo has given a boost to the smart home market, and Best Buy plans to capitalize as an increasing number of consumers look to automate their homes.

Providing services is the other big opportunity for Best Buy. Best Buy is also expanding its In-Home Advisor program to all major US markets, providing free in-home consultations. In October, the company will roll out the offering to 450 stores, and will also enhance the smart home areas in all of its stores. "There is an opportunity-rich environment", he said.

Even so, the forecast fell short of analysts' expectations and Best Buy shares were down more than 8 percent by midday, wiping out gains achieved over the summer months. Those include growing its connected home and smartphone businesses and piloting a service called Assured Living that will use technology to help adult children monitor their aging parents.

Like this



20 September 2017
Chase Elliott, Hendrick Motorsports penalized for aerodyanmics infraction
Hendrick Motorsports said it won't appeal the penalty and Kenny Francis will step in for Gustafson this weekend at New Hampshire. The team was also docked 15 driver and owner points while Chase Elliott's second-place finish has been ruled encumbered.

20 September 2017
Merriam-Webster adds more than 250 words like"word salad" and "sriracha"
Our favorite dictionary-turned-Twitter-wise-guy is back with fresh insights into our insane , crazy times. Merriam-Webster haven't only added new words but they've also added new definitions to existing words.

20 September 2017
Amazon baby registry notices sent to women -- and men -- who aren't pregnant
The site simply asks users to sign in to start their registry, and allows those with a registry to be found via email. It was unclear whether the email that was circulating on Tuesday was accidentally sent by Amazon or if it was a scam.

20 September 2017
The other reason Fenty Beauty is so darn inspiring
Krystal Robertson , a MS nurse who has the disorder, took to Instagram to show the effects of the make-up. When Pop Sugar reached out to Fenty Beauty , they confirmed that the line is not sold in China.

20 September 2017
TSX near six-week high as energy leads gains
In world markets; the Nikkei soared 397.51 points to 20,299.38 and the Hang Seng slipped 107.94 to 28,051.41. The Toronto Stock Exchange's S&P/TSX composite index rose 33.96 points, or 0.22 percent, to 15,270.63.

20 September 2017
RNC covering more than $230000 in Trump legal fees
Trump is able to use campaign funds because he did not accept public financing for the campaign. Its next report is due at the Federal Election Commission on September 20.

20 September 2017
Tomb Raider teaser trailer comes out, with its first poster!
Thanks to co-star Daniel Wu , we've got a sneak peek at the trailer for the upcoming Tomb Raider reboot starring Alicia Vikander . Lara Croft is the fiercely independent daughter of an eccentric adventurer who vanished when she was scarcely a teen.

20 September 2017
Sinkhole Swallows Part of Home in Apopka in Central Florida
It's not clear if the sinkhole is related to heavy rains from Hurricane Irma last week. A family was home at the time but was able to evacuate the home without injuries.

20 September 2017
Sushma Swaraj meets Sheikh Hasina, Bhutanese PM
Tillerson, and Japanese Minister of Foreign Affairs Taro Kono on Monday and discussed connectivity and proliferation issues. Kumar said that since the Dokhlam dispute was already resolved, there was no need to bring up the matter during the meet.

20 September 2017
Ross Stores, Inc. (NASDAQ:ROST) Shares Bought by Wells Fargo & Company MN
It fall, as 57 investors sold DY shares while 83 reduced holdings. 10 funds opened positions while 14 raised stakes. (NASDAQ:PMD). BidaskClub downgraded shares of Ross Stores from a "sell" rating to a "strong sell" rating in a report on Saturday, June 17th.