Greg Mellick

Greg Mellick asked for an update on the impact of tariffs, specifically how much has flowed through to on-the-shelf average unit retail (AUR) at this point. He also inquired about the extent of vendor support for labor in stores, including recent additions like TVs, and how this impacts customer engagement scores.

Answer

Matt Bilunas, Chief Financial and Strategy Officer, stated that enterprise ASP is essentially flat year-over-year, implying that tariff changes on select portions of the assortment have flowed through but are muted by competitive pricing and product mix. Corie Barry, CEO, emphasized maintaining a broad assortment across price points. Regarding labor, Corie Barry explained that vendor labor flexes based on time of year and launches. She clarified that much of this is Best Buy's own trained labor, specialized for particular vendors but operating under Best Buy's broader umbrella, ensuring a consistent customer experience through an integrated operating model.

Greg Mellick asked for an update on the impact of tariffs, specifically how much has been reflected in on-the-shelf Average Unit Retail (AUR) and if it's fully integrated into current pricing. He also sought clarification on the extent of vendor labor support in stores and how it contributes to customer engagement scores.

Answer

Matt Bilunas, Chief Financial and Strategy Officer, indicated that the enterprise's Average Selling Price (ASP) was flat year-over-year, suggesting tariff changes on select assortments are reflected in pricing. He noted that competitive pricing in the industry often mutes the overall impact on ASPs, and product mix changes also play a role. Corie Barry, CEO, highlighted the focus on maintaining a broad assortment across price bands. Regarding vendor labor, Corie Barry explained that its presence flexes based on the time of year and product launches. She detailed Best Buy's multi-faceted labor model, which includes general advisors, specialized category labor, and vendor-partnered labor (mostly Best Buy employees trained on specific vendor products), emphasizing that the operating model integrates vendor support while maintaining Best Buy's culture and customer service standards.