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Best Buy aims to cut $ 1 billion in costs by 2025



Best Buys CFO said: "In this next chapter, our focus will continue to be top line growth."


Photo:

Justin Sullivan / Getty Images

Best Buy
Co.


BBY -0.41%

said they plan to hit $ 50 billion in annual revenue by 2025 and cut about $ 1 billion in costs over the next five years.

Last month, Best Buy reported disappointing sales in the second quarter and narrowed its revenue forecast for the year, citing the impact of US tariffs on Chinese-made goods.

The electronics retailer in Minneapolis said Wednesday that it plans to increase its annual business revenue by about 15% to 16% by 2025, compared to the budget outlook for 2020 of between $ 43.1 billion and $ 43.6 billion in revenue.

"In this next chapter, our focus continues to be top growth," CFO

Matt Bilunas

so. "We also believe that the measures we will outline today, together with a continued focus on cost reductions, will lead to an expansion of operating revenues over the five-year period."

Managing Director

Corie Barry,

which took over in June after serving as the company's chief financial officer, analysts said last month that televisions, smart watches and headphones would be subject to tariffs that went into effect on September 1.

Computer products, mobile phones and game consoles will be hit according to tariffs scheduled December 15, she said.

Best Buy has added services and invested in smart home products to reduce reliance on new product releases. The company's share is up about 27% this year.

Write to Patrick Thomas at Patrick.Thomas@wsj.com

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