This is a partial transcript from Your World with Neil Cavuto, March 7, 2002. Click here for complete access to all of Neil Cavuto's CEO interviews.
NEIL CAVUTO, HOST: Maybe this is why old, crabby Alan Greenspan is so darn giddy. The economy's hopping because people are shopping. Best Buy (BBY) proof of that. The consumer electronics retailer dramatically boosting both its sales and earnings targets after reporting sales rocketed nearly 30 percent in the latest quarter by nearly $20 billion. And look at the stock market reaction. It jumped more than four points today.
Over the past year, Best Buy is up — get this — more than 78 percent. Joining me now, the company's vice chairman, Brad Anderson. He'll be taking over as CEO in June. Sir, good to have you.
BRAD ANDERSON, VICE CHAIRMAN, BEST BUY: Oh, thanks, Neil. Great to be here.
CAVUTO: What is driving all this?
ANDERSON: We have a digital product cycle, lots of digital televisions, DVD players, and new exciting products that continue to be a higher and higher percentage of overall sales.
CAVUTO: Mr. Anderson, what do you think when people in the markets today, your stock notwithstanding, were worried that what Alan Greenspan was implying today is that his next move would indeed be to tighten because thing are picking up so fast. How would that effect you?
ANDERSON: Well, we have seen a modest increase in terms of sales as things loosened up over the course of the last six months. So obviously, we would like to see the continued growth rates. So I think it would have a very nominal effect, but if it continued to rise, it could be a problem.
CAVUTO: Now, did that disturb you when you heard that, that he is, in fact, getting worried that things are picking up?
ANDERSON: I don't think that they are going to overreact. As you see in our sales, our sales are better than we expected. But other things were also working for us. We had better cost containment, a better margin. So I don't think the market is overly hot at this point and time. So, I do not expect them to pull back very far.
CAVUTO: It's interesting, because a lot of these brainiac economists, and folks like Alan Greenspan look at stores like your own, Mr. Anderson, and say that is a good sort of a snapshot of the economy. And if that snapshot is accurate, consumers have no reluctance to spend. Is that what you are noticing?
ANDERSON: Yes. I think that is true, but our sales have been good all year long, which is what you see in our 40-percent earnings improvement over the past year. So, we also lived through the recession or downturn, whatever you call it, very, very well.
CAVUTO: All right. One last question I just got to ask you. This digital revolution with people buying digital cameras and TVs and all of that, how long is that going to last?
ANDERSON: We expect that we have got at least another five years in the kind of product cycle, high-definition television, those kinds of products that are hitting the markets today. So we're pretty confident for the foreseeable future we're going to see pretty strong sales results.
CAVUTO: All right. Brad Anderson, again, congratulations to you. We wish you luck...
ANDERSON: Thank you.
CAVUTO: ... as you take the CEO helm. Brad Anderson, the Best Buy vice chairman, soon to be the top cheese of the company.
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