Best Buy, good and bad
- August 20, 2012 - 8:26 PM
• Best Buy is a Fortune 100 company with more than $50 billion in annual revenue.
• It generated more than $1.8 billion in operating profit last year.
• The company has $1.2 billion in cash and near-cash securities.
• It has 1,447 stores across the United States and 2,861 stores throughout Europe, Canada, China and Mexico and 167,000 employees.
• Its Geek Squad unit gives it additional service offerings for customers beyond hardware.
• It's outlasted a gaggle of consumer electronics competitors, including Circuit City and Highland Superstores.
• Best Buy is cursed by the "showrooming" effect as customers browse Best Buy stores but then purchase online through competitors such as Amazon.
• Revenue growth has slowed in recent years and expectations are the company will see annual revenue declines in next two years.
• Several high-profile executives have departed in the last year, including Geek Squad founder Robert Stephens.
• Management turmoil has left investors confused about the company's strategy and business model. The stock is trading near its five-year lows. Shares dropped 10 percent Monday to $18.16.
• Credit rating agencies this month downgraded Best Buy's debt rating to non-investment grade status.PATRICK KENNEDY
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