Best Buy is that rare tech retailer that has managed to survive the onslaught from online competitors, as consumers still want to see what it is they're buying in person.
But those customers are still behaving cautiously, according to the company's CEO.
DON'T MISS: Best Buy Faces a Big Problem
“We’ve been seeing a consumer who is, whether or not you call it a recession, exhibiting some recessionary behaviors,” said Best Buy chief executive officer Corie Barry, on a May 25th conference call with analysts. “So we’re going to have now two consecutive years of a consumer who’s making some choices away from consumer electronics,” she added.
The big box retailer issued favorable first-quarter earnings, and said the prospects for further growth is gradually expanding.
On the upside, Barry says that U.S. households will finally begin reinvesting in tech toys as the economy brightens toward year-end and as newer, more innovative technology phones, computers, earbuds, and televisions hit the market.
The second half of 2023 should be “the bottom for the decline in tech demand,” Barry said. “I think as we look ahead, we start to feel like you see the turn in the business as you head out the back half of this year and into next year.”
Analysts seem to agree and are on board with Barry and Best Buy.
This week, Telsey Advisory analyst Joe Feldman maintained a “hold” rating on BBY while Anthony Chukumba of Loop Capital Markets maintained a “buy” rating on Best Buy, with a price target of $110.00.
