Best Buy 3Q15 Earnings Call Notes

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Best Buy (BBY) Hubert Joly on Q3 2015 Results
Hubert Joly – Chairman and Chief Executive Officer

Hard to say what demand will look like in 4Q

“I’m afraid that it’s hard to directly answer your question about exactly what the demand is going to be, but we’ve tried our best today to give you as much transparency as possible around the categories. I would say there’s a lot of excitement in a number of product categories, TVs, the demand for 4K TVs and our customer experience in this category is a great example of was we can accomplish. Appliances is less of a giftable item maybe, but our momentum continues to be strong in the market in that category continues to be very strong. There’s a lot of excitement in both – in wearables, connected devices. I’m planning to buy a drone myself, so if you want to join me.

We are excited about the shift to installment billing of mobile phones

“we are excited about the shift to installment billing. We are as a retailer, we are very well positioned to offer these plans, both online and in the stores, again, the only one to offer that from the three retailers.”

Churn is very low in the industry

“The churn in the industry is very low. So most of the customers are interested in having a very tight connection to the carrier and the degree of expertise in our stores, the dedication to individual carriers, the access, the complete access to the carrier’s products and services, systems and so forth is going to be very helpful.”

I think apparel just doesn’t have products that resonate right now

“I think that in the apparel category I think you’ve seen a lot of softness, frankly, with somehow the products in that category don’t seem to be resonating that well with consumers.”

Sharon McCollam – Chief Administrative Officer and Chief Financial Officer

There may have been pent up demand waiting for deals to come in November

“we believe there was another dynamic in October which is pent-up demand with people waiting to anticipate Black Friday deals. Because Black Friday as we all know has turned into black November and we believe that has a particularly stronger impact on the consumer electronics category than other categories. So even going from the last weeks of October to the first week of November, we just got that data off the press. We actually saw a significant improvement from the last weeks of October and the first week of November”