After two years of not quite hitting the mark, Best Buy’s revenue isn’t just making a comeback…
It’s thriving.
Thanks to a new strategy, the company was able to lift itself out of a harrowing slump…
But Best Buy still has work to do.
How Best Buy Boosted It’s Revenue
On August 29th, Best Buy announced that its revenue was doing better than anticipated. In fact, the company was able to adjust its fiscal year profit guidance to be even higher.
Now the company anticipates its adjusted earnings per share for the year to climb in the range of $6.10 to $6.30. This is up from previously anticipated numbers, of $5.75 to $6.20.
SHARES JUMPED 15% AFTER BEST BUY BROKE THE NEWS ON ITS REVENUE.
During their last earnings call, Best Buy’s revenue was $9.29 billion. The original revenue anticipated for the company was closer to $9.24 billion.
So what is the company getting right?
These numbers come off a two-year slump the company was facing. In the years following the pandemic, consumers have become much more hesitant to spend on non-essential items…
Like the new tech Best Buy offers.
But now the company’s biggest bet has paid off: customers are starting to replace the tech they bought mid-pandemic.
THE TECH-REPLACEMENT CYCLE IS SOMETHING THAT BEST BUY COUNTS ON TO BOOST ITS REVENUE…
And during the pandemic shoppers were buying new products en masse.
Something else the company counts on is the new slate of tech from Apple and Microsoft making its debut this year. The company anticipates that more AI-powered tech will also serve as a jump in revenue.
The Game Plan
Best Buy’s strategy to increase its revenue is a simple one: invest in marketing and store associates.
The marketing angle is straightforward, the company puts more money into videos to gauge what customers are interested in and lure them into stores…
The company also is putting trained sales teams in three key sections of the store: Home theatre, appliances, and computing.
Every business ebbs and flows, and if Best Buy keeps making moves to boost its revenue…
It can avoid the fate of other chain retailers that suffer from the same issues.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
