Latest news with #CorieBarry
Axios
3 days ago
- Business
- Axios
Best Buy's tariff plan: Raise prices, cut costs and find suppliers
Best Buy CEO Corie Barry said Thursday that the company has already raised prices on some of its products to offset President Trump's tariffs. Why it matters: Despite a federal court striking down the president's authority to impose the tariffs this week, Best Buy said it's planning as if tariffs will remain at their current rates. What they're saying: "I don't think there is anything we would do differently based on the news overnight," Barry told reporters Thursday, per the Wall Street Journal. "What I've really tried to work with the team on is to not actually overreact to any given moment." State of play: The Richfield-based electronics retailer said it's also been negotiating with suppliers to cut costs and reduce its reliance on Chinese goods. The big picture: Barry said tariffs are just one factor weighing on consumer confidence.
Yahoo
4 days ago
- Business
- Yahoo
Best Buy restructures health unit
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Best Buy reported $109 million in charges primarily linked to restructuring at the electronics retailer's health unit in its first quarter, the company said in earnings released Thursday. The company began restructuring its health business after it recorded a non-cash goodwill impairment charge of $475 million in its fourth quarter ended Feb. 1, linked to a downward revision in the long-term financial projections for its health segment. The retailer partners with healthcare organizations to provide in-home health services, but the business has taken 'longer to develop than we initially thought,' as providers grapple with financial challenges and the future of the federal government's hospital at home waiver seems uncertain, Best Buy CEO Corie Barry said during a call with investors Thursday. Best Buy Health offers technology and logistics to support home care, including services for seniors aging in place, remote patient monitoring and hospital at home. The retailer has notched several health technology acquisitions in recent years, including buying emergency response firm GreatCall in 2018 and senior remote monitoring company Critical Signal Technologies the following year. In 2021, Best Buy acquired home care platform Current Health. The company has also inked deals with health systems like Mass General Brigham, Geisinger and Atrium Health to support home care programs. Now, Best Buy seems to have hit some snags with its health unit. Although the company's active aging services, Lively senior cell phones and medical alerts, and parts of its care at home business 'remain very viable business models for the future,' its in-home health has been slower to scale, partly due to inconsistency in how long the federal government's hospital-at-home waiver will last, Barry said on an earnings call. The CMS' Acute Hospital Care At Home program, first enacted during the pandemic to boost hospital capacity during COVID-19 surges, allows approved Medicare-certified facilities to provide inpatient level care in patients' homes. But the program has only been extended for short bursts. In March, Congress extended the waiver through September, shortly before the program and Medicare telehealth flexibilities were set to expire. Another challenge for scaling hospital-at-home programs includes financial struggles among providers, Barry said. Hospitals have recently reported headwinds linked to market volatility and tariffs, as well as potential policy changes in Washington, like Medicaid cuts. Still, Best Buy expects benefits from 'ongoing efficiencies and effectiveness work streams,' including at the health unit, CFO Matthew Bilunas said on the earnings call. The company didn't respond to a request for comment for more details on its restructuring. 'I think all of us would agree we absolutely see a future where more of your healthcare is taken into your own hands using technology and technology devices,' Barry said. 'You can already see it across our assortment and across how people are choosing to take care of their own health and we will continue to lean into that part of the strategy.' Recommended Reading Best Buy inks third health system product development deal, with Mass General Brigham
Yahoo
4 days ago
- Business
- Yahoo
Best Buy wants AI to offer customers fewer — but more relevant — search results
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Best Buy will roll out an AI-powered search experience across its website and app in the coming year for customers and employees, executives said on a Q1 2026 earnings call Thursday. The updated search engine uses AI prompts to guide customers to more specific searches, according to CEO Corie Barry. The experience is designed to produce fewer but higher-quality results that offer more information and better reflect customer intent. The electronics retailer will update the in-store shopping experience as well. Plans range from special experiences for the Switch 2 console product launch to department-based training for associates. Offering Best Buy customers a great experience creates opportunities for incremental profit streams across the business, according to Barry. While the electronic retailer's performance has been improving as CX initiatives roll out, the company was unable to maintain its return to sales growth as it had in the fourth quarter of 2025. Comparable sales fell 0.7% year over year in the first quarter of 2026, according to a company earnings report. Revenue was down 0.9% year over year to nearly $8.8 billion, but domestic online sales were a bright spot — up 2.1% year over year. About 3 in 5 Best Buy customers visit Best Buy's digital platforms at some part of their shopping journey, and the channel accounts for one-third of domestic revenue transacted, according to Barry. This is in line with what Barry reported in fourth quarter 2025. Best Buy's third-party marketplace, which is slated to launch in the summer, could take advantage of this strong digital baseline. 'We believe our marketplace launch is even more important in this environment as it provides ultimate flexibility in product assortments, price points, vendors and SKUs,' Barry said during the call. 'We can offer customers the broadest and most relevant experience possible, particularly when combined with our upgraded search capability.' The company will enhance the post-purchase experience for its third-party marketplace by letting customers choose between returning products directly to the seller or through a Best Buy store, according to Barry. All products sold on the marketplace will honor Best Buy's return window. Even if digital is the focus, stores remain an integral part of Best Buy's business, and CX investments are paying off there as well. Best Buy will train its workers to improve their expertise. The company completed a program for major appliances associates in March, and it plans to do the same in July with home theater workers to ensure they are well-prepared to help customers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
BBY Q1 Earnings Call: Revenue Misses Expectations, Management Highlights Tariff Headwinds and Marketplace Launch
Electronics retailer Best Buy (NYSE:BBY) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $8.77 billion. Its non-GAAP EPS of $1.15 per share was 5% above analysts' consensus estimates. Is now the time to buy BBY? Find out in our full research report (it's free). Revenue: $8.77 billion (flat year on year) Adjusted EPS: $1.15 vs analyst estimates of $1.09 (5% beat) Adjusted Operating Income: $333 million vs analyst estimates of $303.1 million (3.8% margin, 9.9% beat) Management lowered its full-year Adjusted EPS guidance to $6.23 at the midpoint, a 2.7% decrease Operating Margin: 2.5%, down from 3.5% in the same quarter last year Locations: 1,107.8 at quarter end, down from 1,117 in the same quarter last year Same-Store Sales were flat year on year (-6.1% in the same quarter last year) Market Capitalization: $15.14 billion Best Buy's first quarter results were shaped by mixed category performance and continued shifts in consumer behavior. CEO Corie Barry described how growth in computing, mobile phones, and tablets was offset by ongoing softness in home theater, appliances, and drones. Online sales remained a bright spot, with nearly 32% of domestic revenue coming from digital channels and delivery times continuing to improve. Management acknowledged that customers are highly value-focused and remain attracted to predictable sales moments, with Barry noting, 'customers continued to be deal-focused and attracted to more predictable sales moments.' Operational execution, inventory management, and digital investments played key roles in stabilizing results, despite a cautious consumer environment. Looking ahead, Best Buy's outlook is shaped by ongoing tariff uncertainty and changing consumer technology needs. Management lowered full-year adjusted EPS guidance and cited continued inflation and tariff dynamics as primary headwinds. Barry emphasized that 'there is still uncertainty related to tariff levels, timing, and countries involved in addition to the potential actions of others in the industry.' The company is focused on mitigating tariff impacts through vendor partnerships, manufacturing flexibility, and assortment adjustments. Management expects growth in computing and gaming categories, driven by technology upgrades and product launches, while also investing in marketplace initiatives and retail media to diversify profit streams. These strategies are intended to position Best Buy for long-term resilience amid market challenges. Management attributed first quarter performance to category mix shifts, digital engagement improvements, and evolving supply chain strategies in response to the current tariff environment. Growth in computing and tablets: Strong customer demand for computing and tablet products drove comparable sales growth in these categories, supported by upgrade cycles and interest in AI-enabled devices. Barry noted positive momentum tied to end-of-life support for Windows 10 and new product innovations. Omnichannel and digital expansion: Online sales grew year-over-year for the second consecutive quarter, with faster delivery times and a higher mix of sales through digital channels. Management highlighted improvements in search and app experiences as key contributors to digital engagement. Tariff mitigation strategies: The company has reduced its reliance on China as a sourcing region, now representing about 30–35% of product costs, compared to 55% earlier in the year. Efforts include leveraging vendor manufacturing flexibility, negotiating costs, diversifying sourcing, and adjusting assortment to lessen the impact of tariffs on both costs and prices. Marketplace and retail media initiatives: Best Buy is preparing for a mid-year launch of its third-party marketplace, having already exceeded its annual seller onboarding target. The Best Buy Ads business expanded digital ad inventory and partnerships, including new offerings with Meta, aiming to drive incremental profitability through both traffic and new advertisers. Operational efficiencies and cost control: Investments in supply chain technology, AI-driven customer care, and procurement optimization have resulted in cost savings and improved customer satisfaction. CFO Matt Bilunas pointed to a favorable indirect tax settlement and disciplined expense management as drivers of better-than-expected profitability. Best Buy's near-term outlook is influenced by tariff pressures, consumer demand uncertainty, and the scaling of new digital profit streams. Tariff and supply chain risk: Management highlighted that ongoing trade policy negotiations and varying tariff levels could impact both product costs and consumer pricing throughout the year. The company is actively working with vendors to mitigate these impacts, but acknowledged that cost increases may flow through to customers in select categories. Marketplace and advertising growth: The upcoming U.S. marketplace launch and expansion of the retail media business are expected to benefit gross profit rates, especially in the second half of the year. Management believes marketplace contributions will help offset category margin pressures, while new ad partnerships are set to broaden revenue sources. Category innovation and upgrade cycles: Best Buy expects continued growth in computing and mobile phones, supported by replacement cycles (such as end-of-life for Windows 10 and Mac upgrades), new gaming launches, and increased interest in AI-enabled and wearable products. Management sees these trends as key drivers for comp sales improvement, particularly as the year progresses. In the coming quarters, the StockStory team will be watching (1) how effectively Best Buy navigates further tariff changes and adjusts sourcing strategies, (2) the impact of the U.S. marketplace launch and expanded retail media offerings on gross profitability, and (3) category trends in computing, gaming, and wearables as upgrade cycles and product launches unfold. Progress in cost containment and operational efficiency initiatives will also be important to monitor. Best Buy currently trades at a forward P/E ratio of 10.7×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
Earnings Show ‘Uncertainty' Is the Only Sure Thing for Investors
Earnings season is finally over, and for investors one thing is certain: Corporate executives and Wall Street analysts are deeply concerned about the 'uncertainty' sparked by President Donald Trump's combative trade plans. 'As we look to the rest of the year, there is still uncertainty related to tariff levels, timing and countries involved in addition to the potential actions of others in the industry, as well as the potential reaction of American consumers,' Corie Barry, chief executive officer of Best Buy Co., said during the company's earnings call Thursday.
