SAN BRUNO, CALIFORNIA - AUGUST 29: A view of a Best Buy retail store on August 29, 2019 in San Bruno, California. Best Buy reported second quarter earnings that fell short of analyst expectations with net income of $238 million, or 89 cents a share, compared with $244 million, or 86 cents a share, one year ago. Best Buy stock fell 10 percent on the news. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/Getty Images
Best Buy Co Inc aims to rake in revenue of $50 billion and cut about $1 billion in costs by 2025, while ramping up its healthcare technology business, the biggest U.S. consumer electronics retailer said on Wednesday.
The company has zeroed in on healthcare technology as a key driver in the second phase of its growth plan and has made a series of purchases such as GreatCall in August 2018 for $800 million to build out the business.
Best Buy at its Investor Day also said it expects adjusted operating income to grow 5 per cent in 2025. The retailer has estimated adjusted operating income to be flat to slightly up for its current fiscal year.
The retailer in August narrowed its current year revenue forecast to $43.1 billion to $43.6 billion, blaming uncertainty about future consumer behavior and the U.S. tariffs on Chinese imports.
The first phase of Best Buy’s “New Blue Growth” plan was initiated in 2017 by former Chief Executive Hubert Joly, who stepped down in April.
Shares of the company, which have gained 27 per cent so far this year, were flat in afternoon trading.