I am talking about operating margins. Are you referring to gross margins - well, hell yeah they make money on the gross profit line - everyone is supposed to do that. But the scale of their business requires that SG&A. If you scale back your SG&A, your business will suffer. You have to increase your gross profit dollars...period...and amazon is not doing that.
I believe best buy will be around till Amazon's day of reckoning. Remember, they do not have a liquidity crunch...and Best Buy is the largest retailer of consumer electronics (if I am not mistaken) and As long as consumer electronics is innovating, people will need to feel and touch...
My biggest grieve with BBY is their customer service - which downright sucks...The GEEK SQUAD is awesome and no I am not a novice who needs to call help desk to install an antivirus.
BBY should buy square trade...As that is where they are losing their high margin service business..I would rather turn my defect CE into a store rather than shipping it via UPS to some random location.