Turnaround Efforts at Best Buy Face Uncertainty Amid Tariff Concerns
Best Buy is attempting to turn around a three-year decline in sales growth, but the Street is not convinced the results are coming just yet. Same-store sales is estimated to decrease 1.45% "as a result of macroeconomic stress on spending for discretionary goods, especially big-ticket items," according to Telsey Advisory Group's Joe Feldman. This would be the 13th consecutive quarter of negative same-store sales growth.
- The ongoing uncertainty surrounding AI innovation and tariffs could exacerbate challenges facing Best Buy, potentially affecting consumer confidence in purchasing big-ticket electronics.
- As the replacement cycle kicks in around laptops, notebooks, and phones in 2025, will Best Buy's efforts to innovate and improve services be enough to propel the company towards long-term growth?