Best Buy Co., Inc. (BBY) Earnings Call Transcript & Summary

Well, good morning, everyone. Thank you for joining us for day 1 of our 24th Annual Oppenheimer Consumer Growth and E-Commerce Conference. So my name is Brian Nagel, and I work at Oppenheimer as the consumer growth and e-commerce analyst. So again, thank you for joining us. I'm very pleased to have with us our next presenting company, Best Buy. It's a company I've had the pleasure of following now for many years. And 3 of the company's senior executives, CEO, Corie Barry; CFO, Matt Bilunas, and Senior Vice President of Investor Relations, Mollie O'Brien. So Best Buy team very much thank you for joining us here at our conference.

Thanks for having us.

Thanks for having us.

So we're going to structure this as an informal fireside chat with me asking questions of the Best Buy team and them providing answers. To the extent there are questions from the audience, you can send them through the chat, and I'll work them into our conversation. So but thank you again.

So look, I'm starting all my conversations kind of in the same spot, from a really high level and not company-specific. But I think just given the state of the world right now, I think I would love to start just with your perception, Corie and Matt, of the consumer. Where is -- in your mind, from what you're seeing right now, where is the U.S. consumer kind of from puts and takes standpoint?

Yes. At the highest, highest level, the consumer is actually still in a good place. They don't think they are. So we'll come back to that in a second. But spending broadly, like -- and we always talk about the consumer like it's one person, so I'll just start there. Consumer is still spending. You still have a very resilient jobs market. And consumer confidence, it's kind of ebbed and flowed a bit, a little bit worse here in the spring, but hasn't been awful. What's tricky though is that the current backdrop is impacting different quartiles of the consumer differently. And you're seeing a consumer now who is for sure, making choices. And what's causing that? One, for sure, it's inflation. When they're spending, but they're spending on food, fuel and lodging to a disproportionate extent which means for the rest of us, we're kind of on the goods side of things, there's just less left there for the goods side. Two, they're still spending a lot on services, a lot on vacations, concerts, all the fun things. And even with the inflation in those prices still seeing a consumer who wants lots of experiences. Again, leaves a little less room on the goods side of things. Then you've got a pretty stagnant housing market. So that is causing a little less demand for those of us who tend to flourish in an environment like that. And in our case, explicitly, there is just less innovation. And that's come from 4 years of concentrating a lot more on supply chains and a lot less on innovation to market. Those are things. And again, this is a bit regardless of industry. Innovation is part of what's going to stimulate the goods demand, and if you don't have it, it is hard to see a consumer in there. I will say, though, we continue to see signs of a teetering consumer. So not a bad consumer. But I mean, I was just looking at an article this weekend more than 50% of American consumers believe that we're in a recession. At some point, it doesn't really matter what the data says at the highest level. It is a question of how secure does the consumer feel. There's less credit, there's much lower savings than even the pre-COVID savings rates we were seeing. And you're starting to see people teeter more into some of that default. So I think you're just continuing to see a consumer that's slowly, way more slowly than any of us expected, continues to pull back and make very explicit decisions based on value and perceived value of whatever the items are that they're looking for.

That's very helpful, Corie. I mean it's a great perspective. So just to hone in on that. I mean, again, I know you're not an economist, but you have a very unique position of being CEO of one of the largest discretionary retailers in the United States. So from your [ end, ] do you think the consumer -- I mean, one, is getting a bit more challenged here. Is that what I'm hearing you say?

Yes. I think we're just seeing a little bit more trade down, a little bit more purchasing for duress and certainly much more value hunting. Now what we are also seeing, though, and we talked about it as we talked about the kind of change in trajectory we saw in our business from April into May. In May, we saw a whole new suite of Apple iPads launch, right? You saw a new Air product, you saw new a Pro product, new screens, new accessories. And that did stimulate demand. Enough demand that it changed -- partially at least changed some of the trajectory of the business. So it's interesting because it's not just this whole sale -- I am only trading down question. It is, I'm going to be really thoughtful and targeted where I choose to purchase. And so I think the -- you said it very well. It is definitely a pullback. If there is innovation or if there is a perceived value that will add efficiency to my life or I need in order to work from home or work in a hybrid way, then I can rationalize it. And so I think for everyone, we're all trying to figure out in that world, how do we best position both the experiences that we provide to consumers, but then also how can we best position some of the new and innovative things that might help stimulate some of that demand and really help a consumer see there's value in the products we're selling.

No, it's very helpful. No, definitely -- as the conversation goes on. I definitely want to go back -- something -- to talk about some of these innovations you're seeing because clearly, that's a big driver for Best Buy. But I guess now I'd like to -- I mentioned in my opening, I've had a pleasure following Best Buy for a long time. And what really -- I wanted -- watched [indiscernible] you to be able to talk about this a bit. I mean I watched business model evolve significantly, improved significantly. To the point now where I think Best Buy today is a much, much better -- I mean it's one of the best-run retailers out there, a much better-run company that had been historically. So the question, how do you view the business model today and some of those key shifts that I've alluded to and how you go to market now competitively with a much better business model?

Well, first, on behalf of a team of thousands, thank you. And it really -- it has been a full-throttle effort. Early in the pandemic, obviously, we saw the digital shift happen. And our going-in predisposition before the pandemic, by the way, was that this business was going to continue to penetrate more digitally. It's just that it accelerated massively, and we chose as a team to try to embrace that and embrace a customer who clearly was going to shop us in a myriad of different ways. I mean even think about yourself. I might order something same day, and then I might be way more willing to wait for 2 weeks for different products. And I might want a fully experiential kind of immersive experience for a different product. That could all be from the same retailer, but I want those different experiences incredibly seamlessly. And what I think we tried to do was say, "We're going to have a customer who just is going to expect seamless experiences across every single touch point we have. And can we embrace that and try to reengineer the model." And I think it gets overly simplified into, well, it's a little less labor in stores, it's a little bit more investment in technology. It is actually a complete reconstruction of how we think about leadership in the company, and how we think about field leadership and leading at a market level and making very specific decisions based on the needs of the market and actually putting more labor into customer-facing efforts and maybe a little less into all different layers of leadership we historically might have had. It's about thinking about in-store pickup being as important and experienced as a fully immersive conversation that someone is having the home theater department. And across the last 5 years, it's moving with all those ebbs and flows. The most demand we've ever seen to all the way to a massive amount of pullback and reengineering behind the scenes, so we can invest more in technology, we can come back and start to refresh the stores, and we can actually invest more in frontline associates and some of that specialized labor that really is the cornerstone of who we are. And so I don't think this is a process that's ever done per se, we're testing new models like smaller stores, or stores and markets that we haven't traditionally been able to have a footprint in because we can find a more efficient model. But I do think what we've chosen to embrace is a customer who's going to shop us how they want and we're going to uniquely use our data and our experiences to differentiate in that moment based on what they want. And then the last thing I would say is we're patient. We want to lean in when innovation happens because that is actually our sweetest spot, when we're there with our vendors to bring new and interesting products to life that our customers can experience digitally and physically. And so I give the team a lot of credit for always trying to strike that stakeholder balance in all of our decisions and make sure we are not eroding the employee experience as best possible, not eroding the customer experience as best as possible, even as we're trying to refine the model. And so I think we've also the last couple of years to reinvest maybe in places where we had pulled back a little too much or to take this chance to really freshen up our store experience and get ready for what we think could be a pretty interesting innovation cycle.

Very helpful. So on that point, recognizing Best Buy is going where the consumer is going. So I think the last number I saw, your sales were 30% digital. So the question I have there is, what is that -- I mean, what does that 30% mean? How do you see that shifting over time? And then maybe just this might go more to you, Matt, I mean just how should we as investors think about the profitability of those digital sales versus non-digital sales?

Yes, I'll start and then I'll ask Matt to add on. In terms of what the experience -- I think there's this misnomer that it's like either a physical experience or a digital experience. Most of us, I think, would say from our own life experience, it's both, almost all the time. Like I might look digitally, I might transact on week digitally and then transact in the store the next week, and those digital experiences can be very differentiated as well. We just talked about on our app, 50% of our homepages are now completely personalized to you as a customer, discrete to how you shop, you might need to pay your bill, you might need to check on a service offering, all of that is personalized to just you. That is a digital experience but is a very unique one based on what we know about you as a customer. And so I think what we see as a world where people continue to get just more and more comfort, transacting digitally, and we're trying to figure out how do we take some of that uniqueness that we have in our store and our Blue Shirt and our Geek Squad experience and work that into our digital experiences so they also feel like unique and special experiences that help a customer in the same way the store experience might. And then Matt, if you want to talk about the channels.

Yes. No. I think Corie laid out the foundation for the question. I think in a world where our job is to manage the seamlessness of the experience, the convenience of the experience, we have to manage our profitability in the totality. And I think what we've seen happen is before the pandemic, we saw probably a dot-com business that was -- as best you can break apart those 2 channels, which is increasingly difficult, that was actually had an OI rate that was probably less than a store channel. Today, we actually can see an OI rate for a dot-com experience, dot-com channel, actually be a little bit better because even though we have more supply chain pressure coming through in totality because we're shipping more product and there's more inflation in supply chain than there used to be. there is a lot less fixed cost associated with running a dot-com channel. And that's even taking into consideration you've got more technology you're investing in. Because we've been able to manage the structure of our cost to account for a seamless experience across both channels that allows us to actually have more flexibility in our model. So the outcome is a digital channel that can be more profitable than a fixed, as in a store channel, acknowledging the fact that also our stores fulfill on so much of those dot-com sales. So the net of it is our job is to make sure the profitability is solid and strong and growing in the future across the channels, but a dot-com sale for us is a great sale for us. We're less worried about a channel on where the customer chooses to go, it is -- much more worried about like how seamless and how great is that experience regardless when they go in a store, come back and buy something, if they shop online, they go into a store and buy something because that's the way our customers have been and are going to shop in the future.

And the last thing I'd say, Brian, on this kind of question of channels, we tend to get stuck on digital and physical. I think the team is trying to optimize what does a chat or a call center experience look like? It's a whole another channel. What does in our case, an in-home experience look like, where we have consultants and designers who go in. We also have a virtual store. And so I think what we're trying to figure out is in every single way, customer might want to shop because there are still a lot of people who want to shop over the phone. How can we, in every one of those touch points, optimize the labor models, the experience? And then to Matt's point, the ultimate resulting financial outcome in a way that continues to underscore the unique role we play in technology.

So one thing I've studied omnichannel models, I've learned as an analysts that the investments are never really done, right? I mean it is ongoing. So I get the question, I'll ask you, and I see you supposed -- shake your head, you agree with that statement. But as you think about the digital infrastructure of Best Buy, which again have been -- I think a big, big key to the resiliency and the success of the model. Is the heavy lifting done? Is your infrastructure now in place? Or should we expect some type of further additions, significant additions as the model continues to evolve?

I mean this is just such a lovely question because I think everyone wants one of us as retailers to say, "That's it. We maximized the digital experience, now we're done." And it's just not how this is going to work. And I think AI is just a beautiful example of that, which is this is a complete generational change in how we will bring digital solutions to market. And I think every digital solution and experience is going to keep pushing the envelope and going to keep evolving. And it's not just about retail. Like right now, a customer is as likely to compare our app experience to the Delta app experience, right? If I get used to something, if I can order a pizza and watch someone deliver it, I should be able to order a fridge and watch someone deliver it. And so I think there is this constancy to both -- honestly, both the digital experience and in our case, the physical experience because in consumer electronics, this is also not just like we want the new rev of like red sweaters for the fall. For us, every time we bring a new technology, we need to think about how do we connect it, how do we power it, what do we want that experience to look like for the customer in the store. And so to keep both of those experiences really relevant -- and by the way, we haven't even talked about call center chat, a virtual store and some of the other -- the in-home experience that we're building. And so I think this is a constant investment for us. Now what I give Matt and the team a ton of credit for is you can see it in our history, you have followed us for a long time. We know there's inflation, and we know we need to keep investing in these pieces of the business. So we are also going to keep working to find efficiencies elsewhere to help us offset those pressures. And so it's not usually for us about here's a whole huge incremental bucket of spend. It is how can we keep trying to refine both sides of the model so that you can invest in those experiential pieces that you need to even -- and we've talked about even in the last 2 years, even against a declining industry backdrop, knowing this is an industry that will come back. It's not -- this is not -- this is a point-in-time question, it's not systemic, it's cyclical. And so how do we keep even in that environment, making the investments that we need to, so that you can remain vibrant on the other side as you start to see innovation come back.

So I do just want to touch on the stores. Again, we've talked a bit about this already in the conversation, but I think still most people -- most consumers still think about Best Buy, given your stores, which have been in existence for some time. So how -- again, the question I have there is, how is the store model continuing to evolve? You mention often you're strategically repositioning stores, closing stores, I mean -- I guess, again, how should we think about that whole -- the store within that context?

The work that the team is doing now is around market by market, how do we understand the footprint that will best serve the consumers in that market. And we're looking at consumer penetration within a market against that backdrop. So it used to be -- this question used to be really easy to answer because it was kind of a ubiquitous store footprint and it was either open or closed, and that was like the end of the conversation. I think what makes it harder, but I think really interesting going forward for us is that we will have a number of different formats within a market that are geared to serving the entire market. So here in the Twin Cities, we might have an outlet, which we do, that will -- that's going to serve a certain demographic. We'd have a couple of full experiential stores that are going to have all the bells and whistles and all those in-store experiences that you would want. And then probably a few smaller format stores that are there to serve convenience. I can -- quick in-store pickup. It's going to have the full assortment of products in the back, but maybe a smaller selling floor, and I can still get that convenient experience that I want, but I don't need all the bells and whistles because you talked about our digital penetration, but 40% of that is still picked up in a store, even with the same day available essentially everywhere. And so this idea that we need to now -- it's harder. I love that sometimes I'll get the question from investors, like if you had a white piece paper and could design the whole thing from scratch, how would you do it? And it's not even fair because the hard -- what we have to do is a lot harder. We have to take an existing and modify it. And then there's a couple of things that we're testing. We are testing a smaller, more efficient store format in out market where we wouldn't usually have been able to find a format that would work. But now that -- we're finding some smaller formats that work better. And then we're also testing closing a large format and then opening very nearby a smaller format. It's something we've done in Canada. And we've seen better results doing that than trying to shrink a store because people feel sad when we shrink a store, both customers and employees. But when you actually close a large format and open a fresh like brand-new feeling small one, that feels more like a win. And so from here, I think you're going to watch us optimize. And then don't forget, we have in-home workforce in a market, we'll have virtual. So what we're doing is trying to optimize how do we serve this whole market in the best way without losing those convenient touch points. My hypothesis is, over time, we may have a similar, if not more, amount of touch points, but less selling square footage. And so you'd have that big experience when you want it, but it doesn't need to be ubiquitous across every single store.

And how wide -- and this may not be a fair question for you, but how long will this take. I mean is it just ongoing? Or do you see major milestones in the not-too-distant future?

No, I think this is a longer tail kind of process. And we even said this year, we kind of took a pause from doing a lot of the full-on remodels. And instead, we said, "We need to take a quick breath here." We're going to touch every single store in the chain with some level of refresh. In some cases, that might just be refreshing end caps with new experiences. In some that will be really kind of redesigning the center of the store because so much has changed there for us in the last 5 years. But we felt like this moment to kind of touch everything and refresh a bit was more important than the kind of large-scale changes to just a few number of stores. So part of the reason I hesitate is I can definitely see a nice runway for us, but I think we will take our time getting there so that we can also make sure that the 900-ish stores have that good fresh feeling, especially as our product categories are kind of constantly changing.

So I do want to shift gears now to product innovation. Again, we mentioned here a few times in the conversation, but look, I personally think it's a real key for Best Buy. I mean so I -- it has been my view, I think we've talked about this. There had been, given the disruptions of the pandemic, a lack of innovation coming out of your supplier partners. It seems like that's starting to turn. So I guess the question I have is what are you seeing in product innovation? You mentioned -- it was a few moments ago that, that helped to -- product innovation, I think with Apple specifically helped to offset probably the effects of maybe a potentially weakening consumer. So what do you see in product innovation? I mean -- and then also, we can work AI into the conversation. I mean, is AI, from your perspective, starting to become somewhat more or more of a consumer-facing technology that could actually help you drive better sales at Best Buy?

Yes, we -- there's kind of a few different flavors on innovation here. So we talked about Apple, which is kind of what I think about as that kind of refresh innovation. They brought out new tablets, you've got a faster processing chip in the M4 chip and you've got a new Pro product that has a beautiful OLED screen, a new keyboard, just enough to get people to kind of want that new refresh, especially now that we're 4 years out from the beginning of the pandemic, which is when a lot of people bought a lot of incremental products. And that would be based on our knowledge, kind of that start of just a normal refresh cycle. Very few of us have computers that are more than 5 years old because they just don't do what we want them to do. So that Apple example is the kind of can everyone get back to a refresh cycle that is enough of a refresh that it makes it feel kind of fresh and new, which is, I think, what we saw with the iPads, and it's why we saw that stimulate some customer demand. The second kind is a bit of what you were alluding to, and that is what will AI really disrupt and when will it disrupt? The middle of June is when the newest rendition -- the Microsoft rendition of AI will come out. And that's Copilot Plus products is what they're calling it. And it is the ability to use their Copilot products really easily. They talked about -- they even have a key. You can just press your Copilot key and your little copilot will pop up and help you become more efficient. But it's not just about the software side of this. It is also about -- these are incredibly efficient and beautiful machines. So think about it, in my case, I think my current Surface holds its battery life for about 2.5 hours. The new ones will hold it for 15 to 20 hours. They won't get nearly as hot. You'll put -- all of type at some point on our laps. The fans don't go on nearly as much because it runs so efficiently and so productively. And then yes, it can run large language models without needing to be connected. It can real time, without needing to be connected, translate for you. And I mean, it can do everything from take a stick figure and make it into a beautiful drawing, all the way to some of the productivity tools, we're all getting used to, write your e-mails, write your thank yous, write your polite declines. All of those things will just become more ubiquitous. And this is the sweet spot for us is this really net new innovation. We'll have around 40 SKUs, about 40% of those will be exclusive to Best Buy. So we've been working for years with our vendor partners to bring these in, which means we will have a very broad assortment. And look, we're not saying everybody lined up, and is like just waiting and clamoring to get their new computer. What this does, though, is it kind of like underlying stimulates demand over time and just gives you that reason to potentially upgrade, which you were kind of thinking about anyway. And then the third kind of innovation is where do we just see kind of net new either products coming out or people entering categories differently. Sonos just came out and said they're entering the headphone space, right? You take a brand we're all very used to. And now you create kind of a different way in which you can engage with that product. Or you're seeing a lot more -- Bose has come up with the over-the-ear headphones. So they're not actually in, they're over and they're a little bit more ambient so you can hear what's going on around you or Meta is upgrading their glasses. So now you can start to actually look at something, point at it, say that you want to buy it and it's going to tell you where to buy it, a little creepy, but I'm sure it's handy. But I think you're just -- like all of these that become like layers of innovation for us, which you're right. That's the place where we work most with the vendors. It's the place where we tend to have the most exclusive product. It's the place where we can double down on the messaging and really being there for the customer because they're curious about what the real -- use cases are. All of that tends to be a sweeter spot for us.

So I know it's still early, maybe I guess now we're in June. So back to school and holiday will be here before we know it. But as you look and given what you just said about these products coming in, do we -- are these -- the upcoming peak selling seasons for Best Buy, do you think those will be more invigorated here in '24 than they had been the last couple of years?

I mean -- go ahead, Matt, you go first.

No, I was just going to say, I think what we've seen -- Corie can build on this, I think what we've seen over the last year, especially in a world where the consumer is a bit more pressured, is that these events have become more prominent or important in terms of where retailers need to show up. And I think when you add to that a level of replacement, we're already seeing in places like laptops. Laptop units were growing in Q4, they grew again in Q1. And then you add innovation, you can imagine that some of these events will take on a bigger importance as we get into the back half of the year. And you've seen that happen even this year. We certainly made some trade-offs from Q1 into Q2, placed more of our investments around some of on Memorial Day and back to school, Fourth of July. And as you get into holiday, you can imagine these places are going to be showcasing some of this great new innovation on top of a need to just -- also just replace some of our products that they bought in -- so much over the last 4 years.

That's perfect. So shifting to -- we talked a lot about when the best -- in the Best Buy story, investment story, the continued focus on 2 things: Membership and services. So maybe I'll start throw it out there. I mean talk about those and how the efforts there on the part of Best Buy to drive these businesses as a way to connect better with core consumers.

I think you have to start with kind of why membership or why services in the first place. And for sure, post-pandemic, the consumer is much less brand loyal than they've ever been historically. Everyone got used to shopping everywhere for whatever they wanted. And that has changed how people think about brands. And so for us, the essence of something like membership or services, honestly, is how do we increase frequency and how do we increase that share of wallet with our consumers? How do we make sure we stay relevant even when you might be shopping a bazillion places for a bazillion different things. And so the way we constructed our membership program was how do we take what's unique about Best Buy and work it into a membership because what -- everyone has their own flavor on membership right now, it feels like. So in my mind, what will always make a membership unique and make it consumer interested is some unique value proposition based on who you are at your core as a retailer. And so we have 2 offerings right now. We have My Best Buy Plus which is more geared on convenience and price and kind of -- and is there availability to new deals like that person who loves that newness, that price, that convenience. And then My Best Buy Total, which is much more based in the support and the service side of things. And then on top of that, of course, we've made some adjustments to Total, so you have that 24/7 support. But if you want that extra layer of protection, more warranty. You get 2 years of warranty included but if you want more or you want that paid service like installation, that then becomes that kind of next layer that you can invest with us in, and we'll be there for you. And I think we are seeing good response from our consumers. It -- certainly as we saw a couple of different cohorts. And so the team was smart in breaking apart My Best Buy Plus more in the convenience side and My Best Buy Total that really appeals to that support customer. But across whether it's our service offering or whether it's our membership offerings, what we're trying to do is really double down on what makes us unique. Everything from access all the way to some of that support infrastructure and make sure that we are constantly kind of tweaking those so that this is a really relevant offering to the consumer. What we don't want is breakage in this case. We want them to use it. And so everything that we are continuing to change and kind of tweak a bit in the offerings is all built around trying to make sure that customer stays engaged with us. And it's the same even on the paid service side, which you alluded to which is how do we make sure we have those service offerings that are super relevant to people. And then -- and then I'll be done. There's some that people just forget about like if you want to trade something in, we can help you across whether it's computing or mobile. And so we're just constantly kind of trying to reach out to the consumer and help them think through how, when and where would it be the best timing for me to think about upgrading or to think about investing in that new technology based on all of this data and information we have across our membership base and our services base.

And so as we look at this now, where is up -- consumer uptake versus where you want it to be? I mean I get through how much slack remains on that front?

Yes. I think right now, we're happy with what we're seeing in acquisition. Now again, that's against a backdrop where still you've got a challenged industry. So kind of as the core business goes, you definitely tend to see membership go with it. So I think we're in a good starting spot. I think it will help certainly, if we can see some new innovation. Again, this is a place where when there's new innovation, then I want to trade in, then I want to transfer my data, then I might want to protect what is a higher ASP device. And then I might want some of those accessories to go with it and someone to teach me how to use it. And so this becomes much more of a flywheel as we can kind of head into a higher demand space. So I think we're happy with where we're at in terms of acquisition and we can see upside and better use cases even in the future as you have some of that kind of newer innovation or you can just even get a small trajectory change in the demand curve.

Got it. So I know our time is going to start to run down here. So I guess maybe the final topic I want to make sure we address is just capital allocation. So again, I want to -- in my mind, one of the big positives of Best Buy has been their sustained profitability, sustained cash generation. So the question I have is how do you view the cash flow of the company -- cash flow generation of the company and your efforts to sort of say, redistribute, to investors, excess capital?

Yes. I mean, we really haven't changed our approach or philosophy over the years. I think you've seen us kind of navigate in between the types of ways we allocate our capital. And we're going to continue to make those choices. I think we always -- and it's proven successful for us. We even think about the investments we made in supply chain well before the pandemic ever started. Had we not done that, we would have never navigated the pandemic as good as we did. And so we had outsized investments there that I think were important to our growth. Going forward, we're going to continue to allocate our capital to making sure we're competitive, that we are investing in the right types of technology in our stores, have the right type of experience. And we'll look at those places first. And then we also want to continue to be a strong dividend payer. We have a long-term kind of measure that we try to hold to, a 35% to 45% payout ratio. We've been higher than that simply because of where our performance has been, but that's a good long-term indicator for us in terms of how we want to show up in terms of a dividend. And then whatever is left in terms of cash, which we generate a lot in any given year, will be returned to shareholders, any excess amount. So we haven't changed that approach. We do want to make sure we're being thoughtful about a business in an industry that's increasingly competitive, and we need to show up in terms of allocating our capital in a very efficient and effective way. And wherever we have left, we will choose to get back to shareholders like we've done in the past.

Perfect. So is there anything we did not discuss, and we should have discussed here that we want to make sure we get out there.

I think we're really excited about what honestly is kind of the start to innovation because while AI will definitely disrupt in a good way, computing first, you will start to see it proliferate in televisions and smart home in the way we use our technology broadly. And so what we're trying to do right now is really position ourselves uniquely well, whether that's specialized labor, whether that's refreshes in the stores. We're refreshing our brand, investing a bit more in marketing, being there promotionally when it matters. So that -- as that kind of longer-tail AI innovation disrupts the category, I think we have a really unique and strong position in helping our vendor partners who have a very vested interest in this stuff, bring it to market and do it in a way that is actually relevant to the consumer, and I'm super excited for our chance to be able to do that.

Well, great. Corie, Matt, Mollie, thank you very much for your time, as always.

Thank you.

Yes, thank you.

We appreciate it.

Thank you so much.

Thank you.

Take care.