Best Buy sets $50 billion revenue goal by 2025, targets $1 billion in cost cuts
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The consumer electronics is targeting revenue of $50 billion by fiscal 2025, the company stated in a release ahead of its investors meeting on Wednesday. Best Buy also said it plans $1 billion of additional cost reductions and efficiencies during the next five years. (Best Buy is still targeting revenue of $43.1 billion to $43.6 billion for fiscal 2020.)
“In this next chapter, our focus continues to be top-line growth,” said Best Buy CFO Matt Bilunas. “We also believe the initiatives we will outline today, along with a continued focus on cost reductions, will result in operating income rate expansion over the five-year timeframe.”
The investors meeting is Best Buy’s first in two years. It is also the first one for Corie Barry, who took the reins as company CEO in June. It comes amid Best Buy’s ongoing push into the $3.5 trillion health care market, specifically digital-health technology and health-monitoring services. In 2018, Best Buy acquired Great Call, which provides health and emergency response services to seniors, for some $800 million. More recently, the retailer acquired Critical Signal Technologies, a senior-focused health services company.
At the meeting, Barry and other members of the executive team will outline the next phase of the company’s strategy, which is called “Building the New Blue: Chapter Two.”
Our Building the New Blue strategy is the right one, and it’s working,” Barry said. “We are excited about what we have accomplished so far, and we believe we will continue to enrich our customers’ lives through technology and unlock profitable growth as we execute on the next chapter of this strategy.”