Earnings

Best Buy expects to reach $50 billion in revenue by fiscal 2025, targets $1 billion in cost cuts

A shopper makes a purchase at a Best Buy store in Corpus Christi, Texas.

Eddie Seal | Bloomberg | Getty Images

Best Buy is targeting $50 billion in revenue by fiscal 2025, the company announced Wednesday morning ahead of a meeting with investors in New York.

The company also said in a press release it plans to cut an additional $1 billion in costs over the next five years, while operating income over that time frame grows at a 5% rate.

For fiscal 2020, Best Buy is still targeting revenue to fall within a range of $43.1 billion to $43.6 billion.

The electronics retailer previously had been calling for fiscal 2020 earnings per share to fall between $5.60 and $5.75, excluding one-time items. Sales at stores open at least a year have been forecast to rise 0.7% to 1.7%.

Analysts on average project Best Buy will earn between $5.60 and $5.86 per share this fiscal year, on sales of $43.39 billion, according to Refinitiv.

For the third and current quarter, analysts have been calling earnings per share of $1.03, on sales of $9.7 billion.

Last month, Best Buy’s second quarter profits topped analysts’ expectations, but sales came up short. The company has been investing in its supply chain to speed up delivery ahead of the holiday season, in addition to a slew of recent investments in health care, which it hopes will set it apart from other competitors in the electronics space.

Best Buy shares, as of Tuesday’s market close, have surged more than 27% this year. In premarket trading the stock was up less than 1%. 

This is a developing story. Please check back for updates.

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