Best Buy Co. (BBY) has disclosed a new risk, in the Capital Markets category.
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Best Buy Co. faces foreign currency exchange rate risk due to its international operations, particularly influenced by the U.S. dollar’s strength against the Canadian dollar. The company employs foreign currency forward contracts to mitigate exposure, aiming to stabilize net earnings and cash flows. Despite these efforts, foreign exchange rate fluctuations led to an unfavorable impact of $31 million on revenue in the first half of fiscal 2026, although the effect on net earnings was not significant. Best Buy’s strategy includes both hedging and non-hedging derivatives to manage this risk effectively.
The average BBY stock price target is $79.65, implying 4.57% upside potential.
To learn more about Best Buy Co.’s risk factors, click here.