Boston, MA 03/03/2014 (wallstreetpr) – Best Buy Co., Inc. (NYSE:BBY) is known as electronics giant retailer. The company has seen ups and downs over the past year as the market becomes more competitive, thus trimming sales and margins as the company take desperate price cuts to attract more shoppers to its floor.
However, the company interrupted its shrinking profits and managed to post beating results, and with this it attained a number of remarkable achievements. First, the results helped to hearten investors who had started developing fatigue due to poor results. Second, the beating results helped the company to once more make it clear that its turnaround is in safe hands.
Turnaround chief
Best Buy Co., Inc. (NYSE:BBY) chief executive Hubert Joly is a turnaround expert. And there is no reason so far to doubt this assertion. Look, the company has been able to take cost cuts that have been cited as the reasons behind the most recent quarter earnings beat.
Best Buy Co., Inc. (NYSE:BBY) has been ambitiously trimming away layers of its management, shutting unprofitable stores and boosting cash though sale of assets. The company did just that recently when it exited stake in its joint venture with Carphone Warehouse Group Plc.
Even though Best Buy Co., Inc. (NYSE:BBY) has surpassed its North America cost cutting target, it is not yet done with taking more weight-loss efforts so that it can remain fit enough to sprint ahead of rivals Amazon.com Inc (NASDAQ:AMZN) and Wal-Mart Stores, Inc. (NYSE:WMT) and other retailers that are eating its lunch online and offline. So then, the company now has its eyes set on achieving $1 billion cost-cut annually. Perhaps part of that cost cutting effort lies in the reported planned lay off of some 2,000 managers.
Takeaway
Best Buy Co., Inc. (NYSE:BBY) is clearly unstoppable in its efforts to return big value to shareholders through job cuts, divestment of non-core assets and more that the CEO is bringing on board. Thus, the stock looks post to continue posting encouraging results and the stock price has adequate room to lift moving forward.
