Best Buy CEO outlines plan to reverse decline
Minneapolis -- In his Tuesday address to investors and stockholders in New York City, newly minted Best Buy Co. CEO Hubert Joly acknowledged that sales and profits are on a decline, and presented a plan to shore up finances and operations by cutting expenses, rethinking footprints and improving both offline and online customer satisfaction.
Part of the plan involved tapping former Williams-Sonoma exec Sharon McCollam as its new CFO.
Best Buy is targeting an operating margin of 5% to 6% over time, as well as a return on invested capital of 13% to 15%, Joly said. He told investors Tuesday that the retailer wants to rationalize its footprint but cannot boost operating income just by closing stores.