Best Buy faces market risks from interest rate fluctuations impacting net interest expense and foreign currency exchange rate changes negatively affecting International segment revenue. The company is exposed to supply chain financing program liabilities, and potential legal proceedings. Restructuring charges and lower-than-expected employee retention are also noted as risks. Economic pressures, competition, and dependence on the holiday shopping season are implicit risks.
Financial Upside
Best Buy's revenue growth in computing and tablet categories, and services, partially offset declines in other areas. The company's membership programs and delivery/installation services are highlighted as revenue drivers. A gain on the sale of a subsidiary is mentioned as a positive. The company is actively managing costs and capital allocation to offset inflationary pressures and maintain investment-grade credit metrics.
