Best Buy Co Inc (NYSE:BBY)'s leadership reshuffle expanded with the unexpected departure of Chief Marketing Officer Jennie Weber, Jefferies analysts have highlighted while reiterating their ‘Hold’ rating on the retailer.
Jefferies maintained its $85 price target on Best Buy, which is currently trading at about $82.
The firm wrote that Weber’s departure came as a surprise given a July 14 company announcement that she would report to incoming CEO Jason Bonfig following a series of leadership role reassignments.
Weber will be replaced by current Chief Creative Officer Marty Senn, who joined Best Buy in January. During her tenure as CMO, Weber oversaw marketing, creative, media, membership and customer insights. Jefferies noted that she relaunched the Best Buy brand in 2024 around a campaign focused on the benefits of technology for consumers.
The firm also highlighted Weber’s role in establishing Geek Squad as a key part of Best Buy’s customer service strategy, revamping the retailer’s rewards points program and developing Best Buy Ads into a retail media network. Jefferies also noted that Weber oversaw the retailer’s in-house creative agency and launched the Best Buy Creator Program, which has grown to more than 2,000 creators.
Jefferies wrote that Bonfig’s incoming leadership could bring a fresh perspective to Best Buy, particularly given his vendor relationships and focus on alternative profit streams such as Best Buy Ads and the company’s third-party marketplace.
The firm also viewed incoming CFO Bramman as a strong replacement for recently departed CFO Bilunas, citing her previous public-company CFO experience in retail and consumer businesses.
However, Jefferies wrote that its concern is the number of leadership roles that have been reassigned over a relatively short period, with changes to the marketing organization now adding to the reshuffling.
Looking ahead, Jefferies wrote that Best Buy Ads and the third-party marketplace could support EBIT margins over the longer term, while replacement cycles in consumer electronics, including televisions, could also provide support.
In the near term, however, the firm sees potential pressure on demand in categories including PCs and mobile devices from rising memory costs, which could contribute to category declines. Jefferies wrote that this could result in a roughly flat comparable sales performance next year, below the Street expectation of more than 1.5% growth, with subsequent SG&A deleverage potentially offsetting gross-margin benefits from alternative profit streams.