Is That a Light at the End of the Tunnel for Best Buy Co., Inc. (BBY)?

A question for Best Buy investors
The margins are particularly painful when combined with a drop in revenue — Best Buy Co., Inc. (NYSE:BBY) can’t afford both as it attempts to claw its way back to relevancy. So how does Joly walk the line between cranking up revenue and maintaining even so-so margins, all while fighting off Amazon.com, Inc. (NASDAQ:AMZN) and Wal-Mart Stores, Inc. (NYSE:WMT) (among others)? Best Buy can offset margin pressures by continuing to aggressively cut expenses, but even that may not be enough, at least in the foreseeable future.

It’s been a great run for Best Buy shareholders, who’ve enjoyed a year-to-date return of over 110%. If you’re a new investor, don’t expect much in the near-term; the obstacles are many. But give Joly his due: His proactive steps to sever the Carphone relationship, cut overhead, and ramp up online sales may still shed light on the Best Buy tunnel yet.

The article Is That a Light at the End of the Tunnel for Best Buy? originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

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