For the fourth quarter, the market expects $2.57 in earnings per share on revenue of about $14.7 billion. Both numbers reflect year-over-year growth.
Best Buy has been focusing more on cost savings and bumping up productivity. The retail chain expects to reduce costs by $600 million by fiscal 2021 — it has already reached $465 million.
Catchily named ‘Building the New Blue’ initiative, of which the cost reduction is part of, the move might help Best Buy to regain some solid footing in the market. Expect it to boost the bottom line in the to-be-reported quarter.
Best Buy also recently concluded the buyout of GreatCall — hinting at upcoming health technology offering for senior consumers.
LOOKING BACK
In the previously reported third quarter, customer response and favorable market helped lift comp sales by 4.3%, with comp sales across all regions and products rising.
Due to the robust performance, the retail chain then announced fourth-quarter outlook for enterprise revenues between $14.4 billion and $14.8 billion, with comp sales to be flat to up 3%.
However, despite all this, do expect higher SG&A costs on the retail chain’s push to grow its e-commerce operations and to strengthen its supply chain.