Q4 Smartphone Slide at Best Buy Offset by IoT, Other Growth, CEO Says
Sluggish tablet and smartphone sales led a 1.7 percent Q4 drop in comparable sales at Best Buy, CEO Hubert Joly said on an earnings call Thursday. Joly forecast flat domestic revenue for the full year on strength in connected home…
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and other products countering slowing sales in smartphones and other categories. He cited opportunities in service beyond free setup offered by the Geek Squad. Tech support, beyond self-help, “is something that customers are happy to pay for and we are seeing increased demand,” he said. Online sales were up nearly 14 percent at 15.6 percent of total domestic revenue in the quarter ended Jan. 30, Joly said. For FY 2017, Best Buy is entering the next phase of its Renew Blue strategy, to be “the retailer that helps customers learn about the latest technologies,” Joly said. Joly said low consumer demand and high smartphone penetration “is depressing the category.” Over the year, “more compelling smartphone offerings” could fuel renewed growth in the category, he said. Best Buy’s growth initiatives include the IoT. The Geek Squad and services business are key to the IoT strategy, Joly said. Longer term, Joly is “very excited” about virtual reality.