“Hubert Joly is an accomplished executive,” said Best Buy Founder Richard Schulze in August 2012. “However, Best Buy continues to face enormous challenges and needs a clear plan and a proven leadership team with deep retail experience and knowledge of Best Buy to win back customers, inspire employees and reinvigorate its trusted brand.”
Despite the founder’s obvious dislike of him, CEO Joly initiated a corporate and morale renovation project called “Renew Blue”. This was clearly a good move because today Best Buy announced that Richard Schulze would be returning to the company as Chairman Emeritus in support of the company’s transformation project. Along with Schulze, two of his associates and former Best Buy executives, Brad Anderson and Al Lenzmeier, have been nominated to the board under an agreement between Schulze and the company.
In November 2012 the CEO outlined the transformations of “Renew Blue” and stated that he planned to remove $725 million in costs. As of February 2013, Joly has already eliminated $150 million in costs. And it seems that these improvements have Schulze singing a different tune about Hubert.
“Over the past several months, I have come to know and respect Hubert, and have a high regard for the work he and his executive team are doing to revitalized Best Buy for the benefit of all stakeholders,” said Schuze. “My dedication to the company that I founded and love is unwavering and, together with Hubert and the Board, I determined that the best way to support Best Buy would be to return in support of the initiatives underway.”
Since “Renew Blue” has been underway, share prices have increased from around $16 to around $22 per share.
Despite the company’s recent struggles it is still held by 11 gurus followed by GuruFocus.
With its prices up 2.72% this morning, Best Buy trades at $23.40.