01—Abstract
Summary
Summary of the 10-K filed March 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Best Buy Co., Inc. (BBY) reported fiscal 2025 revenue of $41.53 billiona, down from $43.45 billion in fiscal 2024, which included approximately $735 million from the 53rd week.
Comparable sales declined 2.3%, as the company operated in a challenged consumer electronics industry with softer consumer demand. Operating income fell to $1.26 billionb from $1.57 billion, driven by a $475 million non-cash goodwill impairment for the Best Buy Health reporting unit. Diluted EPS was $4.28, compared with $5.68 in fiscal 2024.
Adjusted diluted EPS, a non-GAAP measure, was $6.37c, unchanged from fiscal 2024, as lower adjusted earnings were offset by fewer diluted shares outstanding. Gross profit rate improved to 22.6% of revenue from 22.1%, with services and membership offerings a key driver in the Domestic segment. Domestic comparable sales declined 2.5%, with growth in computing and services offset by declines in appliances, home theater and gaming.
Cash provided by operating activities rose to $2.10 billiond from $1.47 billion. The company repurchased $500 million of shares and paid $807 million in dividends. The Board approved a 1% increase in the quarterly dividend to $0.95 per share on March 4, 2025.
Management's fiscal 2026 priorities are omni-channel enhancements, including AI-driven search and personalization, a mid-fiscal 2026 launch of the Best Buy Marketplace, and expansion of Best Buy Ads. The company expects capital expenditures of $700 million to $750 million in fiscal 2026 and enters the year facing significant uncertainty about the scope and magnitude of tariffs.
02—Key points
Key Highlights
- Revenue declined 4.4% to $41.53 billion, and comparable sales fell 2.3%, amid softer consumer electronics demand.
- Operating income fell to $1.26 billion (3.0% of revenue) from $1.57 billion, including a $475 million goodwill impairment tied to the Best Buy Health reporting unit.
- Diluted EPS was $4.28 versus $5.68 in fiscal 2024; adjusted diluted EPS was $6.37, unchanged from fiscal 2024.
- Gross profit rate rose to 22.6% from 22.1%, driven by improved services performance, including memberships.
- Cash from operations increased to $2.10 billion from $1.47 billion; $500 million was spent on share repurchases and $807 million on dividends.
- Quarterly dividend increased 1% to $0.95 per share; $3.28 billion remained under the $5.0 billion repurchase authorization.
- Fiscal 2026 priorities include AI-enabled search and personalization, a mid-fiscal 2026 Marketplace launch, and Best Buy Ads expansion, with capital expenditures expected at $700 million to $750 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Best Buy kept $0.02.
- Revenue$41.53B100.0%
- Cost of revenue−$32.14B77.4%
- Gross profit$9.38B22.6%
- Operating costs−$8.12B19.6%
- Operating income$1.26B3.0%
- Interest, other & tax−$335.0M0.8%
- Net income$927.0M2.2%
Where FY2025 revenue went
$41.53B- Cost of revenue: $32.14B, 77% of revenue
- SG&A: $7.65B, 18% of revenue
- Net income: $927.0M, 2.2% of revenue
- Other operating costs: $472.0M, 1.1% of revenue
- Interest, other & tax: $335.0M, 0.8% of revenue
Kept 2.2% as net incomeNet income $927.0M · 2.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 19, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $41.53B$43.45B | −4.4% |
| Cost of Revenue | $32.14B$33.85B | −5.0% |
| Gross Profit | $9.38B$9.60B | −2.3% |
| SG&A Expenses | $7.65B$7.88B | −2.9% |
| Operating Income | $1.26B$1.57B | −19.8% |
| Interest Expense | $51.00M$52.00M | −1.9% |
| Net Income | $927.00M$1.24B | −25.3% |
| EPS (Basic) | $4.31$5.70 | −24.4% |
| EPS (Diluted) | $4.28$5.68 | −24.6% |
| Shares Outstanding (Basic) | 215.20M217.70M | −1.1% |
| Shares Outstanding (Diluted) | 216.60M218.50M | −0.9% |
05—Questions
Frequently Asked Questions
Why did Best Buy's operating income and EPS decline in fiscal 2025?
Operating income fell to $1.26 billion from $1.57 billion, primarily due to a $475 million non-cash goodwill impairment for the Best Buy Health reporting unit and an unfavorable SG&A rate, partly offset by a higher gross profit rate and lower restructuring charges. Diluted EPS fell to $4.28 from $5.68, primarily due to lower operating income.
How did the company's core business perform by segment?
The Domestic segment generated revenue of $38.24 billion, down 4.6%, with comparable sales down 2.5% and adjusted operating income of $1.65 billion. The International segment (Canada) generated revenue of $3.29 billion, down 1.9%, with comparable sales down 0.5% and adjusted operating income of $108 million. Computing and Mobile Phones comparable sales grew 3.4% in the Domestic segment, while appliances and Consumer Electronics declined.
What is Best Buy's liquidity and capital allocation position?
Cash and cash equivalents were $1.58 billion at February 1, 2025, and the company had no borrowings under its $1.25 billion revolving credit facility, which expires in April 2028. The company repurchased $500 million of stock and paid $807 million in dividends in fiscal 2025. The company stated it was in compliance with all covenants and that its credit ratings were BBB+ (S&P, stable) and A3 (Moody's, stable).
What risks does the filing highlight for investors?
The filing highlights macroeconomic pressure on discretionary consumer electronics spending, tariffs and geopolitical trade risks (with approximately 55% of purchased products coming from vendor imports from China and 20% from Mexico), dependence on five suppliers representing approximately 55% of merchandise purchased, competition from multi-channel and e-commerce retailers, and the performance of the Best Buy Health business, which led to the goodwill impairment.
06—Continue