BBY - Embedded Expectations Analysis - 2020 09 29
Best Buy Co., Inc. (BBY:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 17.1x Uniform P/E. At these levels, the market has expectations for profitability to remain stable, but management may have concerns about revenues, business channels, and their In-Home Advisor programSpecifically, management may lack confidence in their ability to sustain low SG&A expenses, improve gross margin rates in the online segment, and maintain EBIT at retail stores and in their e-commerce business. Moreover, they may lack confidence in their ability to keep their business flexible, continue free home delivery services, and provide opportunities for more employees with the In-Home Advisor program. Furthermore, they may be concerned about additional labor hours in retail stores, the flexible workforce model, and the effects of high unemployment on the business. Finally, they may lack confidence in their ability to maintain the safety of customers in-store, and match customer demand
Best Buy provides computing and mobile phones, consumer electronics, appliances, entertainment, services and other products. The company operates two reportable segments: Domestic, which is comprised of the operations in all states, districts and territories of the U.S. under various brand names including Best Buy, bestbuy.com, Best Buy Direct, Best Buy Express, Best Buy Mobile, Geek Squad, GreatCall, Magnolia and Pacific Kitchen and Home; and International, which is comprised of all operations in Canada and Mexico under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and the domain names bestbuy.ca and bestbuy.com.mx.
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