Best Buy Co., Inc. said on Thursday it expects annual sales to surpass peak pandemic levels in 2024, propelled by the top U.S. electronics retailer’s investments in membership programs that have pulled in millions of subscribers. Shares of the company, a big beneficiary from pandemic-era remote-working, jumped 12 percent, even as holiday quarter sales tumbled more than market estimates on product shortages. Best Buy expects its $200-a-year Totaltech membership to add $1.5 billion in revenue by fiscal 2025 through fees and enticing customers to make more frequent purchases. The program, which offers perks such as access to hard-to-find products, extended warranties and discounts, has added 4.6 million subscribers since its launch in October, and the company expects that to double by the start of 2025. “We do not, for 1 minute, believe we hit our peak revenue,” Chief Executive Corie Barry said on an investor call. The company forecast revenue …
Best Buy Sales Rebound Forecast Lifts Shares After Tough Holiday Season
March 4, 2022
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