American electronics retailer Best Buy Co., Inc.(NYSE:BBY) on Tuesday said that it expected to triple its profit margins over time but did not give any more details to hungry investors and analysts.
Best Buy has fallen into tough times as it faces aggressive competition from online retailers such as Amazon and Wal-Mart Stores, both of which have been nimble enough to still remain profitable during the downturn.
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Chief Executive Hubert Joly, who was appointed in August, was left floundering a little bit on Tuesday when investors gathered in New York to ask him about the prospects for the company an when he expected it to turn around.
Shareholders were especially anxious to know whether the company's management was focussing too much on squeezing sales out of existing customers or was it casting its net wider and attracting newer clientele.
Best Buy shares which had closed 1 percent lower on Tuesday were trading at about $15.45 on Wednesday.
Analysts and portfolio managers who have invested in the stock said that there were structural concerns about the company and a management vacuum, especially at the top levels.
The company is the target of a takeover by founder and former Chief Executive Richard Schulze, who is expected to make another bid for the company by the end of the year.
"I spend no time worrying about what our corporate structure will be," Joly told reporters after the event. "I tend to focus on decisions I can influence rather than decisions I can't influence."
He said he wanted to reassure investors about the future of the company and correct the perception that the company was dying.