Best Buy Rolls Out a New 5-Year Growth Plan
Seven years ago, investors had left Best Buy (NYSE: BBY) stock for dead, believing that the e-commerce revolution was sure to crush the consumer electronics giant. However, former CEO Hubert Joly led a remarkable turnaround. By aggressively cutting costs, Best Buy was able to get more competitive on pricing and invest in better service, while also expanding its profit margin.
Adjusted earnings per share bottomed out at $2.07 in fiscal 2014 but surged to a record $5.32 in fiscal 2019. While earnings growth is bound to be slower going forward, Best Buy believes there is meaningful room for additional growth over the next five years. Last week, the company shared its ambitious plans and targets for that period with investors.
One of the key themes of Best Buy's investor presentation was that growing the number of meaningful interactions with customers will build loyalty to the brand, driving future sales. Best Buy set a goal of doubling the number of "significant customer relationship events" to 50 million by fiscal 2025.
Source Fool.com
