Best Buy CEO Corie Barry wants to 'double down' on company's strategy, despite tariff disruptions

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Best Buy CEO Corie Barry says the company is navigating the “tricky” tariff situation and discusses changing consumer confidence. Watch the full interview here:

On Wednesday, Best Buy will hold its first investor day in two years at the New York Stock Exchange. The retailer will update the financial community on how this strategy will evolve. It also will discuss its five-year financial forecasts, which include hitting $50 billion in revenue in fiscal year 2025 at a 5% operating income rate — implying a compound annual revenue growth rate of about 3%.

The most recent tariff list, referred to as List 4, levies a duty of 15%. Levies on a portion of the list went into effect on Sept. 1. These items include TVs, headphones and smartwatches. The rest of the list will go into effect on Dec. 15. Once it's determined what is subject to a tariff, Best Buy then considers how it might mitigate the costs, which is also a moving target.

"You're going to see here heading into holiday, it's actually going to be very hard to track directly through a perfect 10% or 25% tariff," Barry said.consumer confidence hit a nine-month lowWhile she saw the confidence reading, Barry said "there are so many underlying metrics that are still quite healthy. Unemployment is at 3.7%, there's really low wage growth continuing. You also saw the most housing starts we've seen in 11 years in August.

It wasn't that long ago that many wondered if Best Buy would suffer the same fate as one-time competitors Circuit City and Radio Shack. To do that, Best Buy had to survive the competition fromand changing consumer preferences. Barry's predecessor Hubert Joly took over in 2012 and led the company through a transformation to move it beyond being a showroom for Amazon.

 

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