Best Buy Co., Inc. (NYSE: BBY) reported Q4 EPS of $1.24, $0.23 better than the analyst estimate of $1.01. Revenue for the quarter came in at $14.47 billion versus the consensus estimate of $14.66 billion.
Comps fell 1.2%.
Renew Blue Cost Reduction Initiatives Update:
Since the company’s Q3 FY14 earnings release, Renew Blue annualized cost reductions have increased $260 million, bringing the total Renew Blue annualized cost reductions to $765 million ($570 million in SG&A and $195 million in cost of goods sold). The additional $260 million in cost reductions ($230 million in SG&A and $30 million in cost of goods sold) is primarily driven by (1) the optimization of the field and store operating models in the U.S. and Canada; (2) structural changes to certain compensation and benefits programs; and (3) ongoing optimization of returns, replacements and damages.
The company has already exceeded the $725 million North American cost reduction opportunity it presented at its Investor Day in November 2012. Today the company is increasing the target to $1 billion. These additional cost reductions are expected to come primarily from the optimization of (1) returns, replacements and damages and (2) logistics and supply chain