Best Buy Co Inc (NYSE:BBY) declared its second quarter results today. The company managed to post a profit of $146 million even though sales declined by 3.2% year over year to $8.9 billion. Best Buy Co Inc (NYSE:BBY)’s CEO, Hubert Joly, spoke with Courtney Reagan about Best Buy Co Inc (NYSE:BBY)’s continuing sales decline, Courtney Reagan reported about her discusion with Joly on CNBC recently.
“The number of trips to the store for a given purchase is going down. We see online be it web or mobile as the starting point of everything we do, it’s helping the overall business and customer experience. Traffic to the store is going down but conversion is going up,” Joly was quoted as saying.
Reagan mentioned that Best Buy Co Inc (NYSE:BBY) continues to go through several cost cutting measures as part of the company’s transformation. She revealed that Joly also told her that Best Buy Co Inc (NYSE:BBY)’s focus this year has turned to growth and the company is determined to increase its top line. According to Joly, Best Buy Co Inc (NYSE:BBY) is investing significant amount of energy in growing its top line in some of the key categories.
There was a minor furor a few weeks ago when Joly told re/code magazine in his interview with them that ‘tablet sales are crashing down’. Joly now thinks that ‘crashing’ was too strong a word to use then, though he believes that tablet sales have peaked. Joly revealed in his chat with Reagan that computer sales have increased, owing to the recent innovations which allows laptops to also have features that are predominately found in tablets.
According to Reagan, product cycles also impact Best Buy Co Inc (NYSE:BBY)’s sales significantly, a case in point is the upcoming iPhone due to which many people are holding back their smartphone purchases.
As of June 30, 2014, Cliff Asness’ AQR Capital Management owns over 3.4 million shares in Best Buy Co Inc (NYSE:BBY).