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Brian Nagel, Oppenheimer & Co. analyst, on Best Buy’s recent stock woes, and how its new CEO Hubert Joly will impact the company.
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Pact nations in the second quarter and saying it won't forecast profit for the rest of the fiscal year that's not a good side.
My next guests are cut his price target to seventeen dollars from twenty and maintains his hold.
Rating on the stock Oppenheim analyst Brian -- joining me now Brian.
I guess the first question how -- -- job as the new CEO -- Jolie have been turning this company around.
Notes could be a difficult what he's -- a lot of issues right now both DO from the the products from a lack her product cycles Wallace.
Heightened competition with companies like Amazon -- very difficult jobs have head of but he has no retail experience right.
That's right Keith comes from -- I consumer background and he's been tarred as a a turnaround expert sorcery just forgot the game but he has his daughter he's not a retail executive that's correct.
Would you agree that Best Buy has just been incredibly slow at responding to consumers buying online they really did nothing today.
No I think that's a fair assessment they've had Best Buy dot com up for a while little bit -- your frankly I think the interface with consumers -- In doing -- for this approved house -- years now Amazon among others have been taking market share from best wildlife.
-- -- Amazon.com.
There are those who say the best buys just have a show room for Amazon dot comical to show ruling in fact when.
You know but consumers go away and check out the products have a look at and then go buy it online back in June.
Best Buy said that we're gonna end of that -- -- top priority how the heck do you -- something like that young can't stop people from coming into the store.
-- look I think I think the key is -- I've I've said this report clearly it's much easier said than done Britain.
-- Best Buy needs more exclusive product -- price their stores that aren't sold on market.
Yet that's much easier said than done particularly today but challenging product cycle right now work -- -- -- the key categories go back 57 years ago.
I think there was more.
Brand equities -- the TV games less so now this as much as those parts of monetize I think ultimately.
Best Buy -- -- unique items.
I think -- store layout too is pretty all full would you agree.
I think that well look I think the stores need some work yeah probably -- Best -- would read it agree I agree that as well.
I think you -- the biggest -- issue for Best Buy stores are just too big.
You know and in many cases are -- they currently have they still have products that don't go -- well such as dvds and C such.
And complicating all of this up right we have the -- the founder of Best -- trying to take over the company how does that complicate everything.
Well it's it's it's still quite complicated factor -- adds another dimension from an investment standpoint yeah well in my view one that's what I don't think if you'll get got to bring a lot about this over the last few few weeks or so but.
I still -- don't see.
The founder former chairman of of Best Buy been able to secure -- base of the finance and get this -- about.
It's been a tough road crucial for Best Buy Brian Nagel Oppenheimer Brian thank you so much really appreciate it thanks for help -- appreciate it.
This stuff.
-- listeners are huge you have to government want and it's just one thing in other to get another and nothing to so this is great keep them.
Well -- -- it is I'm not anything -- but the.
