BestBuyModel - Financial Analysis Project: Best Buy, Inc....

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Financial Analysis Project: Best Buy, Inc. Dave Johnson Page 1 Part 1: Company Information From Yahoo Finance--Profile--Expanded Business Description: Competitors (Covered by S&P) Ticker Video Menu Incorporated in Minnesota in 1966 as Sound of Music, Inc., Best Buy Company is a specialty retailer of consumer electronics, home-office products, entertainment software, appliances and related services. The company operates retail stores and/or commercial Web sites under the brand names Best Buy, Future Shop, Magnolia Audio Video, and Geek Squad, as well as an outlet store on eBay. Co. operates two segments: Domestic and International. Word wrap Standard & Poors’ investment outlook for computer and electronic retail stocks is positive. "Longer term, they expect consumer electronics retailers to further benefit from a shift toward increased consumer use of digital products and services. . At this point in the cycle, we also see declines in average selling prices, which we think are hurting manufacturers, helping to drive demand, and benefiting retail. As new products are introduced, we see management of inventories and product mix becoming increasingly important in determining which retailers will be the most successful." "Longer term, we see a growing convergence between computers, televisions, cameras, and telecommunications equipment. This should include portable devices that make it increasingly easy to access information and entertainment. As to the impact of the Internet, a growing availability of entertainment for downloading from home is likely to hurt long-term sales of prerecorded disks and cassettes at stores, in our view. We believe that the extent to which the Internet is used as a medium for downloading or distributing recorded entertainment is likely to depend, in part, on the pace at which consumers switch to faster Internet hook-ups, through such means as cable modems and digital subscriber phone lines. Also, we expect that retailers will have increasing opportunities to sell devices that play downloaded content, and possibly to sell new subscription services for music and video." Company Best Buy BBY RadioShack Corp RSH Circuit City Stores CC Electronics Boutique Hldgs ELBO GameStop Corp'B' GME.B Unusual Fact: At Best Buy’s website, under investor relations, they have archived their earnings conference calls with analysts. You can hear the question and answer session that followed. Because of the expansion that Best Buy has experienced, they seem to be in the growth stage of their life cycle, but perhaps the latter end of the growth stage, since they began paying a dividend and buying back their stock, both characteristics of mature companies.
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Financial Analysis Project: Best Buy, Inc. Dave Johnson
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This note was uploaded on 04/07/2008 for the course ACCT 205 taught by Professor Johnson during the Spring '08 term at St. Thomas.

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BestBuyModel - Financial Analysis Project: Best Buy, Inc....

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