Retail

Best Buy Executives Cautiously Optimistic As Sales Rise

Executives at Best Buy are projecting full-year revenue growth to land at 4 percent in 2017, beating a previous estimate, which suggested that growth would only rise by 2.5 percent. However, CEO Hubert Joly warned analysts not to be overly optimistic about the company’s upcoming performance, and the firm advised investors that its recent strong stock performance should not be viewed as a “new normal,” Reuters reports.

The company’s shares beat Best Buy records last week, and electronics sales at established locations climbed 5.4 percent over the second quarter, which ended July 29.

The company is in the midst of a turnaround effort after shuttering underperforming stores, boosting its customer service practices and offering price matching with Amazon. Over the past year, Best Buy has improved its tech support specialist ranks, providing on-site support to around five million homes, Fortune Magazine reported. In addition, the company offers product installation services and has increased its inventory of smart home products.

Best Buy saw net sales grow by 4.8 percent in the most recent quarter, climbing to $8.94 billion. This number topped analysts’ expectations, which had been projected to hit just $8.66 billion, according to Reuters.

The latest news comes on the heels of the announcement that Best Buy will be bringing door-to-door salesmen directly to consumers’ homes in the form of house calls. The company is currently hiring hundreds of staff members who will serve as in-home experts to help customers select appropriate products based on their home environments.

Best Buy will offer the door-to-door salesmen program for free as a way to boost electronics sales, such as televisions and other items, as consumers increasingly spend their money away from brick-and-mortar stores. In addition, the new program will allow the company’s Geek Squad staff members new opportunities for repairs and installations.

“What we’re finding is people in the home tend to spend more because we address a bigger need for them compared to what they spend in the store,” Hubert Joly said.

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