Best Buy Issues Long-Term Financial Targets For Fiscal 2021

(RTTNews) - Best Buy Co., Inc. (BBY) provided a more detailed overview of its Best Buy 2020, and Long-Term Financial Targets for Fiscal 2021.

Looking ahead, the company believes it is operating in an opportunity-rich environment, driven by innovation and customers' need for help.

Best Buy 2020 is designed to take advantage of key growth opportunities by expanding what the company sells and evolving how it sells. By the end of October, the company will enhance the smart home areas in all of its stores; roll out its Best Buy Smart Home Powered by Vivint home automation and security offering to 450 stores; and add 1,500 dedicated smart home employees. Launching Total Tech Support, a new Geek Squad offering that provides ongoing support for a customer's tech, no matter where or when they bought it. This offering is available nationwide in Canada and at 200 stores in 10 U.S. cities.

To support the Best Buy 2020 strategy, the company plans to make key investments in technology and people. It is committed to continuing to create efficiencies that help fund these investments and offset potential pressures.

Best Buy said it delivered $1.4 billion in cost savings over the last five years. And, as previously announced, it plans to drive an incremental $600 million in annualized cost savings by the end of fiscal 2021.

Best Buy is setting new long-term financial targets for fiscal 2021: It projects enterprise revenue of $43 billion versus $39.4 billion in fiscal 2017, which was the last year of the company's Renew Blue transformation. It anticipates Non-GAAP operating income of $1.9 billion to $2.0 billion versus $1.7 billion in fiscal 2017; non-GAAP diluted EPS of $4.75 to $5.00, which represents an 8 to 9 percent compound annual growth rate from fiscal 2017.