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BBY · Best Buy

50 filings

10-Q

BBY 10-Q Quarterly Reports

Best Buy - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K109

BBY filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 109 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’16Jun ’16
  2. Leadership change8-K · Apr ’19Apr ’19
  3. Material agreement8-K · May ’21May ’21
  4. Leadership change8-K · Sep ’25Sep ’25
  1. 2027-Q3

    Best Buy Quarterly Report for Q3 Ended Aug 1, 2026

    Best Buy Co., Inc. reported second-quarter fiscal 2027 revenue of $9.78 billion, up from $9.44 billion a year earlier, with comparable sales growing 4.1% for the quarter and 3.1% for the first six months. Operating income rose to $421 million from $251 million, and net earnings increased to $315 million from $186 million. Diluted EPS was $1.48 versus $0.87 in the prior-year quarter. Growth was driven primarily by computing, home theater, AI glasses and trading cards, partially offset by a decline in traditional gaming. Gross profit rate improved to 23.9% of revenue, aided by Best Buy Marketplace and Best Buy Ads growth and $34 million of IEEPA tariff refunds. Restructuring charges were a net reduction of $6 million in the quarter, compared with a $114 million charge a year earlier. The balance sheet strengthened over the period. Cash and cash equivalents rose to $2.26 billion from $1.74 billion at fiscal year-end, and total equity increased to $3.18 billion. Merchandise inventories grew to $6.30 billion and accounts payable to $6.03 billion. Supply chain financing liabilities within accounts payable were $986 million, up from $600 million at January 31, 2026. Six-month operating cash flow was $1.30 billion, compared with $783 million a year earlier, while share repurchases fell to $36 million from $165 million and dividends paid were $405 million. An additional $41 million of tariff refunds was received on September 2, 2026, and will be recorded in the third quarter. Domestic segment revenue rose 4.3% in the quarter with adjusted operating income of $404 million, while the International segment revenue declined 4.2% with adjusted operating income of $13 million. The company's $1.25 billion revolving credit facility remained undrawn, and the $2.97 billion of remaining repurchase authorization is unchanged in its expiration terms.

    Sep 4, 2026
  2. 2027-Q2

    Best Buy Quarterly Report for Q2 Ended May 2, 2026

    Best Buy Co., Inc. reported net earnings of $276 million, or $1.31 per diluted share, for the first quarter of fiscal 2027 (13 weeks ended May 2, 2026), up from $202 million, or $0.95 per diluted share, in the prior-year quarter. Revenue rose to $8.94 billion from $8.77 billion, and comparable sales grew 2.0%, driven by gaming, computing and mobile phones, partially offset by a decline in major appliances. Operating income increased to $370 million from $219 million, largely reflecting a reduction in restructuring charges (a $9 million benefit versus a $109 million charge a year earlier). Adjusted operating income, a non-GAAP measure, was $363 million versus $333 million, and adjusted diluted EPS was $1.28 versus $1.15. Cash flow from operations was $375 million, compared with $34 million a year earlier, mainly reflecting the timing of accounts payable. Capital expenditures were $160 million and dividends paid were $202 million. No shares were repurchased in the quarter, and $3.0 billion remained available under the $5.0 billion authorization. Cash and cash equivalents stood at $1.75 billion, and long-term debt totaled $1.16 billion, with no borrowings under the $1.25 billion revolving credit facility. The filing notes ongoing uncertainty around tariffs following the U.S. Supreme Court ruling that IEEPA tariffs were unauthorized. Best Buy is participating in the refund process, but it recognized no refund amounts in the quarter. The company also states that it does not expect material future restructuring charges under its current initiatives.

    Jun 5, 2026
  3. 2026-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 1, 2025

    Best Buy Co., Inc. reported third-quarter fiscal 2026 revenue of $9.67 billion, up from $9.45 billion a year earlier, with comparable sales growing 2.7%. Gross profit was $2.25 billion, roughly flat year over year, but operating income fell to $198 million from $350 million, driven primarily by a $171 million goodwill and intangible asset impairment tied to Best Buy Health. Net earnings were $140 million, or $0.66 diluted EPS, versus $273 million and $1.26 a year earlier. The filing states that a large proportion of revenue and earnings is generated in the fiscal fourth quarter, so interim results are not necessarily indicative of the full year. For the first nine months of fiscal 2026, revenue was $27.88 billion and comparable sales rose 1.2%, while operating income fell to $668 million from $1.05 billion. Restructuring charges of $218 million, primarily from a labor and store optimization initiative and the Best Buy Health and China sourcing initiative, and the impairments weighed on results. Diluted EPS was $2.48 versus $3.73. The company reported adjusted diluted EPS of $3.82 for the nine months, a non-GAAP measure reconciled in the MD&A. Balance sheet and cash flow show inventories of $7.99 billion, up from $5.09 billion at fiscal year-end, with accounts payable rising to $7.32 billion, and cash and cash equivalents of $923 million. Operating cash flow was $684 million for the nine months, against $529 million of capital expenditures. The company repurchased $200 million of common stock and paid $602 million in dividends. Remaining authorization under the $5.0 billion repurchase program was $3.1 billion as of November 1, 2025.

    Dec 5, 2025
  4. 2026-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 2, 2025

    Best Buy Co., Inc. reported second-quarter fiscal 2026 revenue of $9.4 billion, up from $9.3 billion a year earlier, with comparable sales growth of 1.6%. Growth came from Domestic comparable sales of 1.1% and International comparable sales of 7.6%, led by gaming, computing and mobile phones. Profitability declined. Restructuring charges of $114 million, versus a $7 million benefit a year earlier, cut operating income to $251 million from $383 million, and operating margin fell to 2.7% from 4.1%. Net earnings were $186 million, and diluted EPS was $0.87 versus $1.34. Excluding restructuring and other non-GAAP items, adjusted diluted EPS was $1.28 versus $1.34. For the first six months, revenue was $18.2 billion and comparable sales rose 0.4%, but diluted EPS fell to $1.82 from $2.47 and adjusted diluted EPS to $2.43 from $2.54. The company recorded $122 million of restructuring charges under a Fiscal 2026 Labor and Store Optimization Initiative that began in the second quarter, and $105 million under a Best Buy Health Optimization and China Sourcing Initiative. Operating cash flow was $783 million versus $817 million, and cash and cash equivalents were $1,456 million at August 2, 2025. The company repurchased $167 million of stock in the six months and paid $403 million in dividends, with $3.1 billion remaining under its $5.0 billion repurchase authorization. The filing states that vendor imports from China now make up roughly 30% to 35% of products purchased, compared with 55% in the prior Form 10-K, and that the company is working with vendors to mitigate tariff effects. The filing does not include forward-looking financial guidance.

    Sep 5, 2025
  5. 2026-Q1

    Best Buy Quarterly Report for Q2 Ended May 3, 2025

    Best Buy Co., Inc. reported first-quarter fiscal 2026 results (quarter ended May 3, 2025) with revenue of $8.77 billion, down from $8.85 billion a year earlier, and comparable sales declining 0.7%. Operating income fell to $219 million from $312 million, driven by $109 million of restructuring charges tied to an initiative focused on optimizing the Best Buy Health business and reducing tariff exposure in China. Net earnings were $202 million, or $0.95 per diluted share, versus $246 million, or $1.13 per diluted share, in the prior-year quarter. Adjusted diluted EPS, a non-GAAP measure reconciled in the filing, was $1.15 compared with $1.20 a year earlier. Cash flow weakened, with operating cash flow of $34 million versus $156 million a year earlier, primarily reflecting the timing and volume of inventory purchases and payments. Cash and cash equivalents fell to $1.15 billion from $1.58 billion at fiscal year-end, and the company repurchased $100 million of common stock while paying $202 million in dividends. The company also entered into a new $1.25 billion five-year revolving credit facility on April 18, 2025, with no borrowings outstanding. Remaining authorization under the $5.0 billion share repurchase program was $3.18 billion as of May 3, 2025. Management noted continued uncertainty around tariffs, stating that vendor imports from China are estimated at 30% to 35% of products purchased, compared with 55% disclosed in the prior annual report. Domestic comparable sales declined 0.7%, with growth in computing and mobile phones offset by declines in home theater, appliances and drones. The company expects to reduce its Domestic Best Buy store count by approximately 5 to 10 stores in fiscal 2026.

    Jun 6, 2025
  6. 2025-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 2, 2024

    Best Buy Co., Inc. reported its third quarter of fiscal 2025 (quarter ended November 2, 2024) in this Form 10-Q. Revenue was $9.45 billion, down from $9.76 billion a year earlier, and comparable sales declined 2.9%. Net earnings rose to $273 million from $263 million, and diluted EPS was $1.26 versus $1.21. Operating income was $350 million compared with $354 million, and the company stated that revenue declines were offset by stronger profitability management. For the first nine months, revenue was $27.58 billion, comparable sales fell 3.7%, and net earnings were $810 million versus $781 million. Gross profit rate rose to 23.4% from 22.9%, primarily from the Domestic services category, including membership offerings. Cash flow and liquidity shifted notably. Operating cash flow was $561 million for the first nine months, up from $290 million, driven mainly by the timing of inventory purchases and payments. Merchandise inventories rose to $7.81 billion from $4.96 billion at fiscal year-end, while accounts payable increased to $7.15 billion. Cash and cash equivalents fell to $643 million from $1.45 billion at February 3, 2024. Shareholder returns continued, with $607 million in dividends paid and $285 million in share repurchases over nine months, and the company expects total repurchases of up to $500 million in fiscal 2025. Remaining authorization under the $5.0 billion program was $3.5 billion. Management highlighted soft demand in a challenged consumer electronics industry. Comparable sales declined in appliances, home theater and gaming, while computing, tablet and services grew. Management said it expects capital expenditures of approximately $750 million for fiscal 2025, down from $795 million in fiscal 2024. The filing also notes that the company will continue to pursue cost efficiencies and that it does not expect material future restructuring charges from its fiscal 2024 initiative.

    Dec 6, 2024
  7. 2025-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 3, 2024

    Best Buy Co., Inc. reported results for the second quarter of fiscal 2025 (ended August 3, 2024) in this Form 10-Q filed September 6, 2024. Revenue was $9.29 billion for the quarter, down 3.1%, and $18.14 billion for the first six months, down 4.8%. Comparable sales declined 2.3% in the quarter, an improvement from the 6.1% decline cited for the first quarter. Gross profit rate rose to 23.5% of revenue from 23.2% a year earlier, and SG&A was 19.5% of revenue versus 19.6%. Operating income was $383 million, up from $348 million, and net earnings were $291 million, compared with $274 million. Diluted EPS was $1.34, versus $1.25 in the prior-year quarter. Non-GAAP diluted EPS was $1.34 for the quarter, compared with $1.22 a year earlier, as reconciled in the filing. Cash provided by operating activities for the first six months was $817 million, compared with $181 million a year earlier, driven mainly by the timing and volume of inventory purchases and payments. Capital expenditures are expected to approximate $750 million in fiscal 2025, versus $795 million in fiscal 2024. Management expects total share repurchases of approximately $500 million in fiscal 2025, and $3.6 billion of the $5.0 billion authorization remained available as of August 3, 2024. The company also reported that Domestic tablet and computing categories grew while appliances, home theater and gaming declined, and that it expects to close approximately 10 to 15 Domestic Best Buy stores in fiscal 2025. The balance sheet showed cash and cash equivalents of $1.39 billion, merchandise inventories of $5.71 billion, and long-term debt of $1.16 billion ($1.15 billion non-current), with total equity of $3.11 billion. The company had $1.25 billion undrawn under its revolving credit facility. Its restructuring initiative is expected to produce no material future charges, according to the filing.

    Sep 6, 2024
  8. 2025-Q1

    Best Buy Quarterly Report for Q2 Ended May 4, 2024

    Best Buy Co., Inc. reported first-quarter fiscal 2025 results (quarter ended May 4, 2024) in this Form 10-Q filed June 7, 2024. Revenue was $8.85 billion, down from $9.47 billion a year earlier, and comparable sales declined 6.1%, which management attributed to a challenging consumer electronics environment marked by high inflation, increased spending outside the home, and lower levels of product innovation. Despite the sales decline, gross profit rose to $2.06 billion from $2.15 billion with a gross profit rate of 23.3% versus 22.7%, SG&A fell to $1.74 billion from $1.85 billion, and operating income was $312 million versus $311 million. Net earnings were $246 million and diluted EPS was $1.13, compared with $244 million and $1.11 a year earlier. Non-GAAP diluted EPS was $1.20 versus $1.15. Cash flow improved markedly, with operating cash flow of $156 million compared with an outflow of $331 million in the prior-year quarter, driven mainly by inventory purchase and payment timing and volume. Cash and cash equivalents were $1.21 billion, and the company repurchased $52 million of stock and paid $202 million in dividends. Management expects fiscal 2025 capital expenditures of approximately $750 million and total share repurchases of approximately $350 million, and it noted that the $5.0 billion repurchase authorization had $3.7 billion remaining at quarter end. The company also highlighted a restructuring initiative begun in the fourth quarter of fiscal 2024, with $16 million of charges this quarter, and expects to close approximately 10 to 15 domestic Best Buy stores in fiscal 2025. Domestic revenue fell 6.8% to $8.20 billion, with declines in appliances, home theater, gaming and mobile phones partially offset by growth in services and laptops. The International segment's revenue fell 3.3% to $644 million and its operating income declined to $9 million from $21 million. Management expects fiscal 2025 to be a year of increasing industry stabilization as consumers begin to upgrade technology bought early in the pandemic, and it cited artificial intelligence-powered computing devices expected to launch in the summer.

    Jun 7, 2024
  9. 2024-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 28, 2023

    Best Buy Co., Inc. reported lower sales and earnings for the third quarter of fiscal 2024, ended October 28, 2023. Revenue was $9.76 billion, down 7.8% from $10.59 billion a year earlier, and comparable sales declined 6.9%. The filing attributes the decline to high inflation and interest rates, the pull-forward of demand in prior years, and increased spending outside the home. Net earnings were $263 million versus $277 million, and diluted EPS was $1.21 versus $1.22. Gross profit rate improved to 22.9% of revenue from 22.0%, but SG&A rose to 19.2% of revenue from 18.3%, and operating income fell to $354 million from $365 million. Non-GAAP diluted EPS was $1.29 versus $1.38. For the first nine months of fiscal 2024, revenue was $28.81 billion, down 8.7%, with comparable sales down 7.8%. Net earnings were $781 million versus $924 million, and diluted EPS was $3.57 versus $4.07. Operating cash flow improved to $290 million from a use of $108 million, driven by lower incentive compensation payments and the timing of inventory purchases and payments. Merchandise inventories were $7.56 billion at quarter-end, up from $5.14 billion at January 28, 2023. Cash and cash equivalents fell to $636 million from $1.87 billion at fiscal year-end. Management expects macroeconomic headwinds to cause consumer electronics industry sales to decline again in fiscal 2024. It expects capital expenditures of about $825 million and total share repurchases of about $350 million for the year. The company ended the quarter with 6.6 million paid members and plans to close about 25 Best Buy stores in fiscal 2024. Its credit ratings remain BBB+ (S&P) and A3 (Moody's), both with stable outlooks.

    Dec 1, 2023
  10. 2024-Q2

    Best Buy Quarterly Report for Q2 Ended Jul 29, 2023

    Best Buy Co., Inc. reported results for the second quarter of fiscal 2024 (ended July 29, 2023) in this Form 10-Q filed September 1, 2023. Revenue was $9.58 billion for the quarter, down 7.2% from $10.33 billion, and $19.05 billion for the first six months, down 9.2%. Comparable sales declined 6.2% in the quarter and 8.2% for the six months. Gross profit rose to 23.2% of revenue from 22.1% in the prior-year quarter, while SG&A rose to 19.6% of revenue from 18.2%, leaving operating income roughly flat at $348 million versus $371 million. Net earnings were $274 million, or $1.25 per diluted share, compared with $306 million, or $1.35 per diluted share, a year earlier. Management attributed the sales decline to a challenged consumer electronics industry affected by pull-forward of demand in prior years, higher spending outside the home, high inflation and rising interest rates, and expects consumer electronics sales to decline again in fiscal 2024. Cash and cash equivalents were $1.09 billion at July 29, 2023, down from $1.87 billion at January 28, 2023. Operating cash flow for the first six months was $181 million, compared with a use of $709 million a year earlier, driven mainly by inventory and payables timing. Capital expenditures were $395 million for the six months, and management expects fiscal 2024 capital expenditures of approximately $850 million. Shareholders' equity was $2.84 billion, and the company repurchased $150 million of stock in the first half, with $3.98 billion of the $5.0 billion authorization remaining as of July 29, 2023 (the filing also notes $3.975 billion in the Item 2 table). The company also completed the sale of a Mexico subsidiary after exiting Mexican operations, recognizing a $21 million gain. The company's credit ratings were unchanged, at BBB+ (Stable) from S&P and A3 (Stable) from Moody's. The filing states that the company plans to close 20 to 30 large-format Best Buy stores and expand Outlet Centers to approximately 25 by the end of fiscal 2024, and that it has no material future restructuring charges expected from its fiscal 2023 resource optimization initiative.

    Sep 1, 2023
  11. 2024-Q1

    Best Buy Quarterly Report for Q1 Ended Apr 29, 2023

    Best Buy Co., Inc. (BBY) reported first-quarter fiscal 2024 results for the three months ended April 29, 2023, with revenue of $9.47 billion, down 11.1% from $10.65 billion a year earlier. Comparable sales declined 10.1%, and the company attributed the drop to macroeconomic pressures, including high inflation and rising interest rates, that led to more cautious customer behavior and softer demand in the consumer electronics industry. Net earnings fell to $244 million from $341 million, and diluted earnings per share were $1.11 compared with $1.49. Operating income was $311 million, or 3.3% of revenue, versus $462 million, or 4.3%, in the prior-year quarter. The Domestic segment drove most of the change in revenue and operating income, while the International segment's revenue declined 11.6%, with a 610 basis point negative impact from unfavorable foreign currency exchange rates. Cash flow improved sharply. Cash used in operating activities was $331 million compared with $1.38 billion a year earlier, which the company primarily attributed to the timing and volume of inventory purchases and payments and lower incentive compensation payments. Cash and cash equivalents were $1.03 billion at April 29, 2023. Shareholder returns were lower, with share repurchases of $81 million compared with $442 million, and regular quarterly dividends of $0.92 per share, up from $0.88. As of April 29, 2023, $4.0 billion remained under the $5.0 billion repurchase authorization, and the company said it currently expects additional repurchases in fiscal 2024. The company stated that it is on track to deliver its fiscal 2024 store plans, which include closing 20 to 30 large format stores and opening approximately 10 Outlet stores, and it expects capital expenditures of approximately $850 million in fiscal 2024. Management said it expects sales in the consumer electronics industry to decline again this year. During the quarter, Best Buy entered into a $1.25 billion five-year senior unsecured revolving credit facility expiring in April 2028, with no borrowings outstanding. Credit ratings were BBB+ (S&P) and A3 (Moody's), both with stable outlooks.

    Jun 2, 2023
  12. 2023-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 29, 2022

    Best Buy Co., Inc. reported weaker results for the third quarter and first nine months of fiscal 2023 (quarter ended October 29, 2022). Revenue was $10.59 billion in the quarter, down 11.1% from $11.91 billion a year earlier, and $31.56 billion for the nine months, down 10.8%. Comparable sales decreased 10.4% in the quarter and 10.2% for the nine months, which the company attributed to lapping strong pandemic-era demand, macroeconomic pressures including high inflation, and softness in consumer electronics demand. Net earnings fell to $277 million from $499 million in the quarter, and diluted EPS was $1.22 versus $2.00. Gross profit rate declined to 22.0% from 23.5%, and operating income fell to $365 million from $670 million, with the Domestic segment driving most of the change. Cash flow weakened considerably. Cash and cash equivalents fell to $932 million from $2.94 billion at fiscal year-end and $3.47 billion a year earlier. Operating cash flow was negative $108 million for the nine months, compared with positive $1.06 billion in the prior-year period, reflecting lower earnings, higher incentive compensation payments, and inventory timing. Merchandise inventories rose to $7.29 billion from $5.97 billion at January 29, 2022, while the company reported a current ratio of 1.0 and a debt-to-earnings ratio of 0.7. The company has a $1.25 billion undrawn revolving credit facility, and its credit ratings (BBB+ from S&P and A3 from Moody's) are both stable. Capital returns continued but at a lower pace. Dividends paid were $595 million for the nine months, and the company repurchased $452 million of stock in the period, with no repurchases in the third quarter. Management expects to spend approximately $1 billion on repurchases in fiscal 2023 and has $4.7 billion remaining under its $5.0 billion authorization. The company also recorded restructuring charges of $61 million for the nine months under an enterprise-wide resource optimization initiative, with an estimated $15 million to $30 million of additional charges expected through the rest of fiscal 2023.

    Dec 6, 2022
  13. 2023-Q2

    Best Buy Quarterly Report for Q2 Ended Jul 30, 2022

    Best Buy Co., Inc. reported weaker results for the second quarter of fiscal 2023 (ended July 30, 2022). Revenue was $10.3 billion, down 12.8% from $11.85 billion a year earlier, and comparable sales fell 12.1%. The company attributed the decline to lapping strong prior-year demand driven by government stimulus, temporary COVID-19 store closures and stay-at-home purchases, along with high inflation that softened consumer electronics demand. Operating income fell to $371 million from $797 million, and net earnings fell to $306 million from $734 million. Diluted EPS was $1.35 versus $2.90, and non-GAAP diluted EPS was $1.54 versus $2.98. Gross profit rate declined to 22.1% from 23.7%, reflecting lower services margins tied to the Totaltech membership offering, lower product margins and higher supply chain costs. Cash flow and capital returns weakened. Cash used in operating activities was $709 million for the first six months, compared with $864 million provided a year earlier, mainly due to lower earnings, slower inventory turnover, timing of inventory payments and higher incentive compensation payments. Cash and cash equivalents were $840 million at July 30, 2022, down from $2.94 billion at fiscal year-end. Share repurchases were paused during the second quarter, leaving $4.7 billion of the $5.0 billion authorization available. The regular quarterly dividend was raised to $0.88 per share from $0.70. Management began an enterprise-wide restructuring initiative, recording $34 million of charges and expecting an additional $40 million to $65 million through the rest of fiscal 2023. Standard & Poor's (BBB+) and Moody's (A3) ratings remained stable. Management stated it is managing inventory carefully, reducing discretionary spending and planning lower store payroll expense, while still investing in growth. The company expects to close approximately 15 to 20 Best Buy stores in fiscal 2023 and to increase Outlet Centers to about 30 by the end of fiscal 2024. The filing also notes the Inflation Reduction Act of 2022, enacted August 16, 2022, which management does not expect to have a material impact on its consolidated financial statements.

    Sep 8, 2022
  14. 2023-Q1

    Best Buy Quarterly Report for Q1 Ended Apr 30, 2022

    Best Buy Co., Inc. reported first-quarter fiscal 2023 revenue of $10.65 billion, down from $11.64 billion in the prior-year quarter. Revenue declined 8.5%, and comparable sales fell 8.0% as the company lapped strong prior-year results driven by government stimulus, temporary COVID-19 store closures and stay-at-home demand. Net earnings were $341 million, or $1.49 per diluted share, versus $595 million, or $2.32 per diluted share, a year earlier. Non-GAAP diluted EPS was $1.57 compared with $2.23. Operating income was $462 million, a 4.3% operating income rate versus 6.6% previously. The filing attributes the 230 basis point decline in the operating income rate to a lower gross profit rate, which reflected Totaltech membership costs of approximately 100 basis points of gross margin pressure, increased promotions and higher supply chain costs, as well as lower sales leverage on fixed SG&A expenses. Liquidity declined over the quarter. Operating activities used $1.38 billion of cash, compared with $105 million provided a year earlier, mainly due to inventory purchase and payment timing and higher incentive compensation payments. Cash and cash equivalents were $640 million at April 30, 2022, down from $2.94 billion at January 29, 2022. The company repurchased $442 million of stock and paid $199 million in dividends. It reaffirmed plans to spend approximately $1.5 billion on share repurchases in fiscal 2023, with $4.7 billion of its $5.0 billion authorization remaining. The filing states that management expects fiscal 2023 results to differ from prior years, citing the absence of stimulus, expected higher promotional activity and supply chain pressure, and it notes that macro conditions worsened after March guidance, including higher inflation and the war in Ukraine. The balance sheet remains investment grade, with Standard & Poor's rating of BBB+ and Moody's rating of A3, both with stable outlooks. The current ratio was 1.0 at April 30, 2022, compared with 1.2 at May 1, 2021. The company had $1.25 billion of undrawn capacity under its Five-Year Facility Agreement.

    Jun 2, 2022
  15. 2022-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 30, 2021

    Best Buy Co., Inc. reported third-quarter fiscal 2022 results (quarter ended October 30, 2021) with revenue of $11.91 billion, up from $11.85 billion a year earlier, and net earnings of $499 million, or $2.00 diluted earnings per share, compared with $391 million and $1.48 a year earlier. Nine-month revenue was $35.40 billion and net earnings were $1.83 billion, or $7.23 diluted EPS. Comparable sales grew 1.6% in the quarter and 17.5% for the first nine months. Domestic comparable online sales declined 10.1% in the quarter, and the company attributed this to channel shifts in customer shopping behavior after the pandemic. Operating income rose to $670 million in the quarter from $561 million, and gross profit as a percentage of revenue was 23.5% for the quarter, compared with 23.6% a year earlier. Cash and cash equivalents fell to $3.47 billion from $5.49 billion at fiscal year-end, reflecting $1.73 billion of nine-month share repurchases, $548 million of capital expenditures and $522 million of dividends. Inventories rose to $8.55 billion from $5.61 billion at January 30, 2021. Operating cash flow for the nine months was $1.06 billion, versus $3.91 billion a year earlier, which the company attributed mainly to an earlier and larger inventory build for the holiday season. Management stated it is pursuing its Building the New Blue Strategy, launched the Best Buy Totaltech membership program nationally, and agreed to acquire Current Health Ltd. for approximately $400 million and Two Peaks, LLC (Yardbird Furniture) for approximately $85 million, both completed in early November 2021.

    Dec 3, 2021
  16. 2022-Q2

    Best Buy Quarterly Report for Q2 Ended Jul 31, 2021

    Best Buy Co., Inc. reported strong second-quarter fiscal 2022 results for the three months ended July 31, 2021. Revenue rose to $11.85 billion from $9.91 billion, and comparable sales grew 19.6%. Gross profit increased to $2.81 billion, with gross profit at 23.7% of revenue versus 22.9% a year earlier. Operating income was $797 million compared with $568 million, and net earnings were $734 million, or $2.90 per diluted share, versus $1.65 per diluted share in the prior-year quarter. The Domestic segment drove the results, with revenue up 20.6% and comparable sales up 20.8%. Online revenue in the segment, however, fell 28.1% on a comparable basis as customers returned to stores. The effective tax rate fell to 8.0% from 22.9%, mainly due to resolution of certain discrete tax matters, which also aided earnings. For the first six months, revenue was $23.49 billion, up 27.1%, and net earnings were $1.33 billion, or $5.22 per diluted share. Cash provided by operating activities fell to $864 million from $3.79 billion, largely because of inventory build and lower accounts payable. The company repurchased $1.33 billion of stock in the first half, compared with $56 million a year earlier, and cash and cash equivalents ended at $4.34 billion. Total debt, including current portion, stood at about $1.37 billion, and the company had $3.8 billion of its $5.0 billion share repurchase authorization remaining. After quarter end, it repurchased an additional 1.4 million shares for $160 million and announced plans to repurchase more than $2.5 billion of shares in fiscal 2022. The company is exiting Mexico, with all stores closed by the end of the first quarter of fiscal 2022, and the International segment will consist of Canada going forward. Restructuring included a $44 million credit in the Domestic segment for the six months, reflecting lower expected termination benefits. Management also described plans to scale its Best Buy Totaltech membership program nationally at the end of the third quarter of fiscal 2022.

    Aug 31, 2021
  17. 2022-Q1

    Best Buy Quarterly Report for Q2 Ended May 1, 2021

    Best Buy Co., Inc. reported first-quarter fiscal 2022 results for the 13 weeks ended May 1, 2021. Revenue rose to $11.64 billion from $8.56 billion, and comparable sales grew 37.2%. Gross profit was $2.72 billion and operating income was $769 million, or 6.6% of revenue, versus $229 million (2.7%) a year earlier. Net earnings were $595 million, and diluted earnings per share were $2.32, compared with $0.61. The filing attributes the Domestic segment's 37.9% comparable sales gain to continued demand for technology products and services focused on the home. Domestic operating income was $734 million and International operating income was $35 million. Cash flow and capital returns were heavy this quarter. Operating cash flow was $105 million, compared with $827 million a year earlier, mainly due to inventory changes. Share repurchases totaled $927 million and dividends $175 million, with cash, cash equivalents and short-term investments of $4.34 billion at quarter end. The company entered a new $1.25 billion five-year senior unsecured revolving credit facility on May 18, 2021, replacing the previous facility, which had been fully drawn in the prior-year quarter and repaid in July 2020. Standard & Poor's upgraded the company to BBB+ on May 20, 2021, and Moody's rating remained A3. Management announced on May 27, 2021, that planned fiscal 2022 share repurchases would increase to $2.5 billion. The company is exiting its Mexico operations, with all stores closed as of the end of the quarter. The International segment will consist of Canada going forward. The quarter included restructuring credits of $42 million in total, including $6 million of inventory markdowns tied to the Mexico exit. Management notes that product availability constraints may continue in future quarters.

    Jun 4, 2021
  18. 2021-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 31, 2020

    Best Buy Co., Inc. reported strong third-quarter fiscal 2021 results for the three months ended October 31, 2020, with revenue of $11.85 billion, up from $9.76 billion a year earlier, and comparable sales up 23.0%. Operating income rose to $561 million from $395 million, and diluted earnings per share were $1.48 versus $1.10. For the nine months, revenue was $30.33 billion, comparable sales rose 8.1%, and diluted EPS was $3.74 versus $2.96. The Domestic segment drove results, with online revenue of $3.8 billion in the quarter, up 173.7% on a comparable basis, and the company cited elevated COVID-19-driven demand for products that help customers work, learn, cook, entertain and connect at home. The company also recorded $148 million of charges tied to its decision to exit Mexico operations and other Domestic corporate changes, including $36 million of inventory markdowns in cost of sales, and expects additional pre-tax restructuring charges of approximately $50 million to $75 million. Non-GAAP diluted EPS was $2.06 for the quarter versus $1.13. Cash, cash equivalents and short-term investments reached $5.68 billion at October 31, 2020, supported by operating cash flow of $3.91 billion for the nine months and the issuance of $650 million of 1.95% notes due 2030, which will be used to replace the 5.50% notes maturing March 2021. The company resumed share repurchases in the fourth quarter of fiscal 2021 and has $1.9 billion of its $3.0 billion authorization available. Inventory rose to $7.46 billion from $5.17 billion at fiscal year-end, and accounts payable rose to $9.11 billion, while total debt including current portion stood at $1.93 billion. Management noted that the environment remains uncertain given COVID-19 and that the company may incur material future restructuring costs it cannot forecast.

    Nov 30, 2020
  19. 2021-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 1, 2020

    Best Buy Co., Inc. reported net earnings of $432 million on revenue of $9.91 billion for the second quarter of fiscal 2021 (three months ended August 1, 2020), compared with $238 million on revenue of $9.54 billion in the prior-year quarter. Diluted EPS was $1.65, versus $0.89 a year earlier, and the filing states this is an 85% increase. Comparable sales rose 5.8% in the quarter, driven by Domestic comparable sales growth of 5.0% and International growth of 15.1%. Operating income was $568 million, or 5.7% of revenue, up from $313 million. The filing attributes the margin expansion primarily to materially lower SG&A expense, which the company tied to cost reductions made in response to the COVID-19 pandemic. For the first six months, revenue was $18.47 billion, down 1.1% from the prior year, while diluted EPS of $2.26 rose 22%. Domestic online revenue was $4.8 billion in the quarter, up 242.2%, which management attributes to higher conversion rates, increased traffic and a shift in customer shopping behavior during the pandemic. The filing notes that gross profit rate declined in the Domestic segment, mainly due to higher supply chain costs from the greater online mix and lower profit-sharing revenue from the private label and co-branded credit card arrangement. Management also cited employee retention credits under the CARES Act that reduced SG&A by $12 million in the quarter and $81 million for the six months. Liquidity improved substantially. Cash and cash equivalents were $5.31 billion at August 1, 2020, compared with $2.23 billion at February 1, 2020. Operating cash flow for the six months was $3.79 billion, versus $625 million a year earlier, driven mainly by working capital changes, including later inventory payments. The company drew its full $1.25 billion revolving credit facility on March 19, 2020, and repaid it in full on July 27, 2020. Share repurchases remain suspended, with $1.9 billion of the $3.0 billion authorization available. The filing also notes that the COVID-19 pandemic remains highly uncertain and could affect future results.

    Aug 31, 2020
  20. 2021-Q1

    Best Buy Quarterly Report for Q2 Ended May 2, 2020

    Best Buy Co., Inc. reported its first quarter of fiscal 2021 (ended May 2, 2020) with revenue of $8.56 billion, down from $9.14 billion a year earlier, and net earnings of $159 million, or $0.61 per diluted share, compared with $265 million, or $0.98 per diluted share, in the prior-year quarter. Comparable sales declined 5.3%, and operating income fell to $229 million from $334 million, with the operating income rate at 2.7% versus 3.7%. The filing attributes the results primarily to COVID-19 disruption: stores moved to a contactless, curbside-only model on March 22, 2020, while Domestic online revenue rose 155.4% on a comparable basis to $3.3 billion. Liquidity was the main balance-sheet change. The company fully drew its $1.25 billion revolving credit facility in March 2020, lifting cash and cash equivalents to $3.92 billion from $2.23 billion at February 1, 2020, and creating $1.25 billion of short-term debt. Operating cash flow was $827 million, versus $2 million a year earlier, driven mainly by working-capital changes including lower inventory. Share repurchases were suspended on March 21, 2020, and $1.9 billion of the $3.0 billion authorization remained available. Quarterly dividends of $0.55 per share were paid, totaling $141 million. Management identified several ongoing risks, including lower profit-sharing revenue from the private label credit card program, higher supply chain costs from the mix shift to online sales, and the possibility that store closures or traffic declines could lead to impairment charges. An employee retention credit of $69 million under the CARES Act reduced SG&A in the quarter, and the company noted that the pandemic's duration and scope remain highly uncertain.

    May 27, 2020
  21. 2020-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 2, 2019

    Best Buy Co., Inc. filed this Form 10-Q for the third quarter of fiscal 2020, covering the period ended November 2, 2019. Revenue was $9.76 billion for the quarter, up from $9.59 billion a year earlier, and net earnings were $293 million versus $277 million. Diluted earnings per share were $1.10, compared with $0.99 in the prior-year quarter. Operating income rose to $395 million from $322 million, and the filing states that the operating income rate increased 60 basis points, driven mainly by a lower SG&A rate. Enterprise comparable sales grew 1.7%, following 4.3% growth in the prior-year quarter. Domestic comparable online sales grew 15.0%. For the first nine months, revenue was $28.44 billion and net earnings were $796 million, with diluted EPS of $2.96. Operating cash flow was $937 million, compared with $1.107 billion a year earlier, mainly due to working capital timing. Cash and cash equivalents were $1.205 billion, and total long-term debt, less current portion, was $1.239 billion. The company repurchased $707 million of stock in the nine months and paid $398 million in dividends. As of November 2, 2019, $2.3 billion of the $3.0 billion repurchase authorization remained. The filing also reflects adoption of the new lease standard (ASC 842), which added $2.751 billion in operating lease assets and $2.844 billion in total operating lease liabilities to the balance sheet. Management flagged ongoing U.S.-China tariff uncertainty and noted that List 4B tariffs take effect December 15, 2019. The quarter was marked by strong online growth and cost discipline, but total inventory rose to $7.569 billion from $5.409 billion at fiscal year-end, and the filing notes that the company's full-year results depend heavily on the holiday fourth quarter.

    Dec 6, 2019
  22. 2020-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 3, 2019

    Best Buy Co., Inc. reported results for the second quarter of fiscal 2020 (quarter ended August 3, 2019). Revenue was $9.54 billion, up 1.7% from $9.38 billion, with Enterprise comparable sales growth of 1.6%. Gross profit rose to $2.28 billion (23.9% of revenue) and operating income was $313 million (3.3% of revenue), versus $335 million a year earlier. Net earnings were $238 million, and GAAP diluted EPS was $0.89 compared with $0.86 in the prior-year quarter. The filing states that non-GAAP diluted EPS was $1.08, and that the company returned $363 million to shareholders through dividends and share repurchases. Restructuring charges of $48 million related to U.S. retail operating model changes weighed on GAAP results. Domestic segment revenue grew 2.1% to $8.82 billion, with online revenue up 17.3% on a comparable basis to $1.4 billion. International revenue declined 3.4% to $715 million, driven by a 1.9% comparable sales decline and currency effects, mainly in Canada. For the first six months, net earnings were $503 million and diluted EPS was $1.86. Cash and short-term investments totaled $1.61 billion at August 3, 2019, down from $1.98 billion at February 2, 2019, primarily due to share repurchases and the CST acquisition. Operating cash flow for the six months was $625 million, compared with $1.11 billion a year earlier. The balance sheet changed materially with the adoption of ASC 842 leases. Operating lease assets were $2.77 billion and total operating lease liabilities were about $2.87 billion. The company had $2.7 billion of its $3.0 billion share repurchase authorization remaining, and it had no borrowings under its $1.25 billion revolving credit facility. The filing also discloses tariff exposure: management estimates purchases from China at approximately 60% of total cost of goods sold, and says tariff impacts have been minimized to date through accelerated purchases and vendor actions.

    Sep 6, 2019
  23. 2020-Q1

    Best Buy Quarterly Report for Q2 Ended May 4, 2019

    Best Buy Co., Inc. reported first-quarter fiscal 2020 results for the three months ended May 4, 2019. Revenue was $9.14 billion, up from $9.11 billion in the prior-year period, with Enterprise comparable sales growth of 1.1%. Gross profit rose to $2,169 million from $2,125 million, and operating income increased to $334 million from $265 million. Net earnings were $265 million, compared with $208 million a year earlier, and diluted EPS was $0.98 versus $0.72. The filing notes that the prior-year quarter included $30 million of restructuring charges tied to the closure of Best Buy Mobile stand-alone stores, and this quarter had none. The Domestic segment drove most of the improvement, with operating income of $332 million, while the International segment (Canada and Mexico) generated operating income of $2 million, compared with an operating loss in the prior year. Revenue in International declined 5.2%, with the strengthening U.S. dollar and a comparable sales decline in Canada cited as factors. Cash flow was weaker: operating cash flow was $2 million versus $204 million a year earlier, mainly due to working capital timing, and cash, cash equivalents and restricted cash fell to $1,767 million. The company returned $232 million to shareholders through dividends ($134 million) and share repurchases ($106 million). The balance sheet reflects the adoption of the new lease standard (ASC 842), which added $2.7 billion of operating lease assets and $2.8 billion of total lease liabilities. Total debt including finance leases was $1,207 million, and the company had a $1.25 billion undrawn revolving credit facility. Management stated that it was in compliance with all financial covenants as of May 4, 2019. The company also completed the acquisition of Critical Signal Technologies, Inc. for approximately $125 million on May 9, 2019, after the quarter end.

    Jun 7, 2019
  24. 2019-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 3, 2018

    Best Buy Co., Inc. (BBY) reported results for the third quarter of fiscal 2019, ended November 3, 2018, in this Form 10-Q filed December 7, 2018. Revenue was $9.59 billion for the quarter, up from $9.32 billion a year earlier, with comparable sales up 4.3%. Diluted EPS was $0.99 versus $0.78 in the prior-year quarter, and net earnings were $277 million compared with $239 million. For the first nine months, revenue was $28.08 billion, up 4.8%, and diluted EPS was $2.57 versus $2.05. Non-GAAP diluted EPS for the quarter was $0.93 and is reconciled to GAAP in the filing. Operating income for the quarter was $322 million, down from $350 million, as the gross profit rate declined on higher supply chain costs and the national rollout of Total Tech Support, and the SG&A rate rose on growth investments, incentive compensation and GreatCall transaction costs. The quarter included the October 1, 2018 acquisition of GreatCall, Inc. for $792 million net cash consideration, which added $496 million of goodwill and $371 million of intangible assets. Total cash, cash equivalents and short-term investments fell to $1.30 billion from $3.13 billion at February 3, 2018, reflecting share repurchases and the GreatCall acquisition. Total debt was $1.33 billion, including a $500 million 4.45% notes issuance due 2028 that was used, along with cash, to repay $500 million of 2018 Notes. The company repurchased $1.14 billion of stock in the first nine months, and $1.9 billion remained under the $5.0 billion February 2017 authorization at quarter end. Management estimated that the latest $200 billion list of U.S. tariffs on Chinese imports, effective September 24, 2018, affects about 7% of annual cost of goods sold, or around $2.3 billion, and does not expect a material impact for the rest of the fiscal year, while acknowledging greater uncertainty in future periods.

    Dec 7, 2018
  25. 2019-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 4, 2018

    Best Buy Co., Inc. reported second-quarter fiscal 2019 results (quarter ended August 4, 2018) with revenue of $9.38 billion, up from $8.94 billion a year earlier, and comparable sales up 6.2%. Net earnings rose to $244 million from $209 million, and diluted EPS was $0.86 versus $0.67. Gross profit as a percentage of revenue declined to 23.8% from 24.1%, while SG&A as a percentage of revenue improved to 20.0% from 20.5%. Operating income was $335 million, flat as a rate at 3.6% of revenue. For the first six months, revenue was $18.49 billion and net earnings were $452 million, with diluted EPS of $1.58 compared with $1.27. Non-GAAP diluted EPS was $0.91 in the quarter versus $0.69 a year earlier, per the filing's reconciliation. The balance sheet reflects the repayment of the $500 million 2018 Notes on August 1, 2018. Cash and cash equivalents were $1.87 billion, short-term investments were $465 million, and long-term debt was $801 million, with total long-term debt of $848 million including current portion. Total equity fell to $3.19 billion from $3.61 billion at fiscal year-end, reflecting $774 million of share repurchases in the first half and dividends. The company repurchased an incremental 1.7 million shares for $135 million between the quarter end and September 5, 2018, and $2.3 billion remained under the $5.0 billion authorization. The quarterly dividend rose to $0.45 per share from $0.34. The filing also discloses a definitive agreement signed August 15, 2018, to acquire GreatCall, Inc. for $800 million in cash, expected to close by the end of the fiscal 2019 third quarter. Best Buy Mobile stand-alone stores, which numbered 257 at the start of the year, were all closed during the quarter, and the company recorded $47 million of restructuring charges in the first half. The company also adopted the new revenue recognition standard (ASU 2014-09), which increased opening retained earnings by $73 million.

    Sep 10, 2018
  26. 2019-Q1

    Best Buy Quarterly Report for Q2 Ended May 5, 2018

    Best Buy Co., Inc. (BBY) reported first-quarter fiscal 2019 results for the thirteen weeks ended May 5, 2018. Revenue rose 6.8% to $9.109 billion, with comparable sales up 7.1%. Gross profit was $2.125 billion (23.3% of revenue, versus 23.7% a year earlier), and operating income declined to $265 million from $300 million, reflecting a $30 million restructuring charge tied to closing the remaining Best Buy Mobile stand-alone stores. Net earnings rose to $208 million from $188 million, and diluted EPS increased to $0.72 from $0.60, helped by a lower effective tax rate of 19.2% versus 35.6% due to the Tax Act. The filing states that non-GAAP diluted EPS was $0.82 after excluding the restructuring charge and a tax-reform-related employee bonus item. Cash and short-term investments totaled $2.633 billion at May 5, 2018, down from $3.133 billion at February 3, 2018, as cash was returned to shareholders. Share repurchases were $399 million (5.6 million shares at an average of $71.78), and the quarterly dividend rose to $0.45 per share from $0.34. The company had no borrowings under its new $1.25 billion five-year revolving credit facility, which it entered on April 17, 2018. Remaining authorization under the $5.0 billion repurchase program was $2.6 billion, and the company intends to repurchase at least $1.5 billion of shares in fiscal 2019. Total long-term debt was $1.342 billion, including $550 million classified as current because the $500 million 2018 Notes are due August 1, 2018. The company also disclosed securities class actions related to fiscal 2011 earnings guidance, for which it stated that the amount or range of reasonably possible losses cannot be estimated.

    Jun 8, 2018
  27. 2018-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 28, 2017

    Best Buy Co., Inc. reported results for the third quarter of fiscal 2018 (quarter ended October 28, 2017) in this Form 10-Q filed December 1, 2017. Revenue rose 4.2% to $9.32 billion, with consolidated comparable sales growth of 4.4%. Gross profit was $2.28 billion (24.5% of revenue), SG&A was $1.93 billion, and operating income was $350 million (3.8% of revenue). Diluted EPS from continuing operations increased to $0.78 from $0.60 a year earlier. Management cited two headwinds in the quarter: mobile phone revenue that was materially below expectations because a major new phone launched in November rather than October (estimated impact of more than $100 million), and natural disasters in south Texas, Florida, Puerto Rico and Mexico, which management estimated reduced comparable sales by 15 to 20 basis points and earnings by about $0.03. For the first nine months of fiscal 2018, revenue increased 3.3% to $26.79 billion, comparable sales rose 3.8%, and diluted EPS was $2.05 versus $1.92 in the prior-year period. Operating cash flow was $1.20 billion, compared with $1.41 billion a year earlier, which management attributed mainly to working capital timing. Shareholder returns were about $1.5 billion through dividends and repurchases in the nine months, and management plans roughly $2.0 billion in share repurchases for the fiscal year. Cash and short-term investments totaled $3.34 billion at quarter end against $1.15 billion of carrying value on senior notes, with the $500 million 2018 Notes classified as current. Management highlighted its Best Buy 2020: Building the New Blue strategy, including smart home expansion, Total Tech Support, the In-Home Advisor program, and a new target of $600 million in additional annualized cost reductions and gross profit optimization by the end of fiscal 2021, with $100 million achieved to date. Domestic online revenue reached $1.08 billion in the quarter, up 22.3% on a comparable basis.

    Dec 1, 2017
  28. 2018-Q2

    Best Buy Quarterly Report for Q2 Ended Jul 29, 2017

    Best Buy Co., Inc. reported its second quarter of fiscal 2018 (quarter ended July 29, 2017) with revenue of $8.94 billion, up from $8.53 billion a year earlier, and diluted earnings per share from continuing operations of $0.67 versus $0.56. Operating income rose to $321 million from $289 million, and net earnings were $209 million compared with $198 million in the prior-year period, which included a $16 million gain from discontinued operations. Consolidated comparable sales increased 5.4%, with Domestic online comparable sales up 31.2%. For the first six months, revenue was $17.47 billion and diluted EPS from continuing operations was $1.27, versus $1.26 a year earlier, with the prior-year period benefiting from $183 million of non-recurring CRT settlement proceeds in the Domestic segment. Gross profit as a percentage of revenue was 24.1% in the quarter, compared with 24.2% a year earlier, and SG&A as a percentage of revenue fell to 20.5% from 20.8%. Cash and short-term investments totaled $3.49 billion at July 29, 2017, against $3.92 billion at January 28, 2017. Cash used for share repurchases was $771 million in the first six months, and the company repurchased 7.2 million shares in the quarter for $397 million. Management noted that the company had about $4.3 billion remaining under its February 2017 $5.0 billion repurchase program, and the quarterly dividend rose to $0.34 per share from $0.28. The filing describes the Best Buy 2020: Building the New Blue strategy, including expansion of the in-home advisor program and a new target of $600 million in additional annualized cost reductions and gross profit optimization by the end of fiscal 2021. The company also disclosed that its securities class action litigation remains pending, and that the amount or range of reasonably possible losses cannot be estimated.

    Sep 5, 2017
  29. 2018-Q1

    Best Buy Quarterly Report for Q1 Ended Apr 29, 2017

    Best Buy Co., Inc. reported first-quarter fiscal 2018 results for the three months ended April 29, 2017. Revenue rose to $8.53 billion from $8.44 billion, with consolidated comparable sales growth of 1.6%. Gross profit declined to $2.02 billion from $2.15 billion, and operating income fell to $300 million from $372 million. The filing attributes the margin decline mainly to the prior-year $183 million non-recurring CRT settlement proceeds, which boosted the prior-year Domestic gross profit. Net earnings from continuing operations were $188 million, or $0.60 per diluted share, compared with $226 million, or $0.69 per diluted share, a year earlier. Prior-year figures also included restructuring charges of $29 million and CRT settlement benefits that the company excluded from its non-GAAP results. Cash flow and capital returns were a notable part of the quarter. Operating cash flow was $243 million, down from $492 million, mainly due to working capital timing. The company repurchased $384 million of stock and paid $105 million in dividends. Management announced an intent to repurchase $3.0 billion of shares over two years and raised the quarterly dividend to $0.34 per share from $0.28. Cash and short-term investments totaled $3.6 billion, against $1.35 billion of total debt, and the company had no borrowings under its $1.25 billion revolving credit facility. Credit ratings were BBB- (S&P), Baa1 (Moody's) and BBB- (Fitch), all with stable outlooks. Operationally, Domestic segment comparable sales rose 1.4%, led by computing, connected home and gaming, offset by tablet softness. Domestic online revenue reached $1.0 billion, up 22.5% on a comparable basis, and online represented 12.9% of Domestic segment revenue. International comparable sales grew 4.0%. Management highlighted its Best Buy 2020 strategy, a new $600 million cost reduction target through fiscal 2021 after completing a $400 million program, and the planned Best Buy Smart Home offering in more than 400 stores by Holiday.

    Jun 5, 2017
  30. 2017-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 29, 2016

    Best Buy Co., Inc. reported results for the third quarter of fiscal 2017 (ended October 29, 2016) in this Form 10-Q. Enterprise revenue was $8.95 billion, up 1.4% from the prior year, and GAAP diluted earnings per share from continuing operations rose to $0.60 from $0.37. Operating income increased to $312 million from $230 million, and operating margin improved to 3.5% of revenue. Results were supported by a higher gross profit rate (24.6% of revenue versus 23.9%), a sharp drop in restructuring charges, and a Domestic segment comparable sales gain of 1.8%, with online comparable sales up 24.1%. For the first nine months, revenue was $25.92 billion (up 0.1%) and diluted EPS from continuing operations was $1.85, including $161 million of net CRT litigation settlements. Non-GAAP diluted EPS from continuing operations was $0.62 for the quarter, versus $0.41 a year earlier. The balance sheet shows cash and short-term investments of $3.12 billion, against $1.37 billion of total debt including current portion. Merchandise inventories rose to $6.33 billion from $6.65 billion a year earlier (and $5.05 billion at fiscal year-end), and accounts payable reached $6.23 billion. Operating cash flow for the nine months was $1.40 billion, versus $463 million a year earlier, while the company repurchased $528 million of stock and paid $417 million in dividends. Management stated that its liquidity was sufficient to fund repurchases, capital spending, dividends and repayment of the 2016 Notes without drawing on its $1.25 billion undrawn revolving credit facility. Management also flagged that product recalls in mobile phones and appliances hurt results in October and would have a larger impact in the fourth quarter. The company also disclosed that its Standard & Poor's rating was upgraded to BBB- in July 2016, and that the first-quarter cathode ray tube antitrust matter was now resolved. The company's stated priorities include Renew Blue Phase 2 cost savings of $300 million achieved toward a $400 million target by the end of fiscal 2018, and planned repurchases of $1.0 billion in fiscal 2017 and 2018.

    Dec 2, 2016
  31. 2017-Q2

    Best Buy Quarterly Report for Q2 Ended Jul 30, 2016

    Best Buy Co., Inc. reported its second quarter of fiscal 2017 (three months ended July 30, 2016) with revenue of $8,533 million, essentially flat versus $8,528 million a year earlier, and diluted earnings per share from continuing operations of $0.56 versus $0.46. Operating income was $289 million, flat year over year, with the operating income rate unchanged at 3.4% of revenue. For the first six months, revenue declined to $16,976 million from $17,086 million, while operating income rose to $661 million from $374 million, driven mainly by lower restructuring charges ($29 million versus $177 million in restructuring charges) and the $161 million net Cathode Ray Tube settlement recognized in cost of goods sold. Net earnings for the six months were $427 million, compared with $293 million a year earlier, and diluted EPS was $1.31 versus $0.82. The Domestic segment delivered comparable sales growth of 0.8% in the quarter, with online comparable sales up 23.7%, while International revenue declined 1.0% to $644 million on a reported basis, although it grew on a constant currency basis. Management highlighted progress on its Renew Blue Phase 2 cost program, which has reached $250 million of a $400 million target over three years. Cash and short-term investments totaled $3,451 million at quarter end, and total debt including current portion was $1,384 million, with $1.25 billion of undrawn capacity on a new five-year revolving credit facility entered into June 27, 2016. Shareholder returns continued through $322 million of share repurchases and $328 million of dividends in the first six months. The filing also notes that Standard & Poor's upgraded the company's long-term rating from BB+ to BBB- on July 26, 2016, and that the Cathode Ray Tube litigation has now been resolved, with the company settling with the remaining defendants for $161 million net of legal expenses in the first quarter of fiscal 2017.

    Sep 2, 2016
  32. 2017-Q1

    Best Buy Quarterly Report for Q1 Ended Apr 30, 2016

    Best Buy Co., Inc. reported first-quarter fiscal 2017 results for the three months ended April 30, 2016. Revenue was $8.44 billion, down from $8.56 billion a year earlier, a 1.3% decline. Operating income rose to $372 million, or 4.4% of revenue, from $86 million (1.0% of revenue), and net earnings were $229 million, or $0.70 per diluted share, versus $0.36. Results included $161 million of net CRT settlement proceeds. On a non-GAAP basis, diluted EPS from continuing operations was $0.44, compared with $0.37 a year earlier, and non-GAAP operating income was 2.9% of revenue. Domestic segment comparable sales were essentially flat at (0.1)%, while Domestic comparable online sales grew 23.9%. International segment revenue fell 8.1% to $614 million, mainly due to foreign currency impacts and the Canadian brand consolidation. The company ended the quarter with $1.85 billion in cash and cash equivalents and $1.22 billion in short-term investments, and operating cash flow was $483 million compared with $(10) million a year earlier. Best Buy repaid its $350 million 2016 Notes in March 2016, reducing total debt to $1.38 billion from $1.73 billion at January 30, 2016. It repurchased $101 million of common stock and paid $238 million in dividends, including a special dividend of $0.45 per share. Management reaffirmed its fiscal 2017 outlook of approximately flat revenue and non-GAAP operating income, with EPS growth driven by share repurchases, but did not raise the full-year outlook.

    Jun 9, 2016
  33. 2016-Q3

    Best Buy Quarterly Report for Q3 Ended Oct 31, 2015

    Best Buy Co., Inc. reported results for its third quarter of fiscal 2016 (quarter ended October 31, 2015). Revenue was $8.82 billion, down 2.4% from $9.03 billion a year earlier, while operating income rose to $230 million from $205 million. Net earnings attributable to Best Buy shareholders were $125 million, and diluted EPS was $0.36, versus $0.30 in the prior-year quarter. Non-GAAP diluted EPS from continuing operations was $0.41, compared with $0.34. Domestic segment revenue grew 1.2% to $8.09 billion, with comparable sales up 0.8% (0.5% excluding installment billing benefit) and online revenue up 18.3% on a comparable basis. The International segment was a drag, with revenue down 29.9% to $729 million and an operating loss of $14 million, driven largely by the Canadian brand consolidation and foreign currency. For the first nine months of fiscal 2016, revenue was $25.91 billion and diluted EPS was $1.18, including $88 million of earnings from discontinued operations tied to the Five Star sale. Restructuring charges of $189 million, mainly from the Canadian brand consolidation (closing 66 Future Shop stores and converting 65), weighed on results. The company also recorded $75 million of net CRT litigation settlement proceeds. Management expects fourth-quarter Domestic revenue to be near flat and International revenue to decline about 30%, with a non-GAAP operating income rate decline of 25 to 45 basis points at the Enterprise level. Liquidity remained solid, with cash and short-term investments totaling $3.35 billion at October 31, 2015, and no borrowings under the $1.25 billion revolving credit facility. Best Buy repurchased $388 million of stock in the first nine months and paid $421 million in dividends, including a $0.51 special dividend. Total debt was $1.64 billion. Credit ratings were upgraded by S&P, Moody's and Fitch during August 2015.

    Dec 4, 2015
  34. 2016-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 1, 2015

    Best Buy Co., Inc. reported its second quarter of fiscal 2016 (quarter ended August 1, 2015) in this Form 10-Q, filed September 4, 2015. Enterprise revenue rose 0.8% to $8.53 billion, driven by a 3.9% revenue increase in the Domestic segment, partially offset by the Canadian brand consolidation and approximately 120 basis points of foreign currency impact. Operating income was $288 million (3.4% of revenue) versus $225 million a year earlier, and net earnings attributable to shareholders were $164 million, or $0.46 diluted EPS, compared with $146 million and $0.42 in the prior-year quarter. Non-GAAP diluted EPS from continuing operations was $0.49, up 17.0%. Domestic comparable sales rose 2.7% excluding the installment billing impact, and online comparable sales increased 17.0%. For the first six months, results were weighed by restructuring charges of $182 million tied mainly to the Canadian brand consolidation, which closed 66 Future Shop stores and converted 65 others to the Best Buy brand. International segment revenue fell 23.9% to $1.32 billion and posted an operating loss of $239 million. Six-month net earnings were $293 million, including a $92 million gain from discontinued operations, principally the $99 million gain on the sale of the Five Star business in China. Six-month diluted EPS was $0.82, versus $1.73 a year earlier, which included a $353 million discrete tax benefit. Balance-sheet and capital-return items include cash and short-term investments of $3.50 billion, total debt of $1,609 million, and $324 million of share repurchases in the quarter. The company paid a $0.23 regular quarterly dividend, and in the first quarter it paid a special dividend of $0.51 per share. Subsequent to the quarter, S&P, Moody's and Fitch upgraded Best Buy's long-term credit ratings to BB+, Baa1 and BBB-, respectively, all with Stable outlooks. Management's outlook for the third quarter calls for flat to low-single-digit Domestic revenue growth and an International revenue decline of approximately 30%.

    Sep 4, 2015
  35. 2016-Q1

    Best Buy Quarterly Report for Q2 Ended May 2, 2015

    Best Buy Co., Inc. reported first-quarter fiscal 2016 results (quarter ended May 2, 2015) with revenue of $8.56 billion, down from $8.64 billion a year earlier, and operating income of $86 million versus $210 million in the prior-year quarter. The decline was driven by $186 million of restructuring charges, mainly $188 million in the International segment tied to the Canadian brand consolidation, which closed 66 Future Shop stores and converted 65 more to the Best Buy brand. These were partly offset by $67 million of net cathode ray tube (CRT) litigation settlements. Net earnings attributable to shareholders were $129 million, or $0.36 diluted EPS, compared with $461 million, or $1.31 diluted EPS, a year earlier; the prior-year figure included a $353 million discrete tax benefit. Continuing operations earned $37 million, and discontinued operations contributed $92 million, mainly a $99 million gain on the sale of Five Star in China. Domestic segment revenue rose 1.4% to $7.89 billion and operating income increased to $304 million from $226 million. Domestic comparable sales were up 0.6%, or down 0.7% excluding the estimated benefit of installment billing. Consumer electronics comparable sales rose 7.6%, while tablets and computing remained weak. The International segment posted an operating loss of $218 million, and its revenue fell 22.1% to $668 million. Cash used in operating activities was $10 million, and cash and short-term investments totaled $3.74 billion at quarter end. Total long-term debt was $1.61 billion, and the company declared a $0.74 per share dividend, including a $0.51 special one-time payment. Management guided to a second-quarter Enterprise revenue decline of flat to negative low-single digits, with a year-over-year non-GAAP operating income rate decline of 0.3% to 0.5% of revenue. It also expects the Canadian consolidation to reduce non-GAAP diluted EPS by $0.10 to $0.20 for the balance of fiscal 2016, and it plans to resume share repurchases with $1.0 billion targeted over three years.

    Jun 8, 2015
  36. 2015-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 1, 2014

    Best Buy Co., Inc. reported its third quarter of fiscal 2015 (quarter ended November 1, 2014) in this Form 10-Q. Revenue was $9.38 billion, up 0.6% from $9.33 billion a year earlier, with consolidated comparable sales up 2.2%. Gross profit was $2.13 billion (22.7% of revenue, versus 23.1%), and SG&A fell to $1.93 billion from $2.04 billion, driven by Renew Blue cost reductions. Operating income rose to $190 million from $90 million, and net earnings from continuing operations were $107 million, or $0.30 diluted EPS, compared with $0.12 a year earlier. Non-GAAP diluted EPS from continuing operations was $0.32 versus $0.18. For the first nine months, revenue declined 2.3% to $27.31 billion and operating income fell to $625 million from $671 million. Results include a $353 million non-cash income tax benefit from reorganizing certain European legal entities, which produced a tax benefit for the period and an effective tax rate of (22.9)%. Management expects a higher tax rate going forward and estimates a year-over-year diluted EPS impact of negative $0.09 to $0.10 in the fourth quarter. Cash and short-term investments totaled $3.14 billion at November 1, 2014, against long-term debt of $1.59 billion (plus current portion). The company agreed on December 3, 2014 to sell its Jiangsu Five Star Appliance business and exit its China retail business, with closing expected in the first quarter of fiscal 2016.

    Dec 5, 2014
  37. 2015-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 2, 2014

    Best Buy Co., Inc. reported results for the second quarter of fiscal 2015, ended August 2, 2014. Revenue was $8.90 billion for the quarter, down from $9.27 billion a year earlier, and $17.93 billion for the first six months. Gross profit was $2.06 billion (23.1% of revenue) versus $2.46 billion (26.5%) a year earlier, and operating income fell to $238 million from $413 million. The prior-year quarter included $229 million of net LCD-related legal settlements, which the company excludes in its non-GAAP comparisons. Net earnings attributable to Best Buy shareholders were $146 million, or $0.42 diluted EPS, versus $266 million, or $0.77, a year earlier. Non-GAAP diluted EPS from continuing operations was $0.44 versus $0.32 in the prior-year quarter. Domestic comparable sales declined 2.0% in the quarter, while comparable online sales rose 22.0%. Management attributed the improved profitability to Renew Blue cost reductions, now totaling $900 million toward a $1 billion annualized target. For the first six months, operating income was $435 million and net earnings attributable to shareholders were $607 million, which included a $353 million discrete tax benefit from reorganizing certain European legal entities. Management expects comparable sales to decline in the low-single digits in the third and fourth quarters, and expects a higher income tax rate going forward because the tax benefit will not recur. Liquidity remained solid, with cash and short-term investments totaling $3.08 billion at quarter end. Long-term debt was $1.64 billion. In the quarter, the company entered into a new $1.25 billion five-year revolving credit facility, and it recorded $487 million of operating cash flow for the six months. Fitch upgraded the company's rating to BB with a Stable outlook. The company also reported a settlement of the Techforward trade secrets litigation, which it said did not have a material impact.

    Sep 10, 2014
  38. 2015-Q1

    Best Buy Quarterly Report for Q2 Ended May 3, 2014

    Best Buy Co., Inc. reported first-quarter fiscal 2015 results for the three months ended May 3, 2014, with revenue of $9.04 billion (down from $9.35 billion) and net earnings from continuing operations of $461 million, or $1.31 per diluted share, compared with $97 million a year earlier. The results were heavily influenced by a non-cash income tax benefit of $353 million from reorganizing certain European legal entities. Excluding that benefit, the company's effective tax rate would have been 40.1%, and the filing states that non-GAAP net earnings from continuing operations were $116 million, or $0.33 per diluted share, versus $110 million in the prior-year period. Operating income rose to $197 million from $168 million, with SG&A falling to $1.82 billion from $1.98 billion as Renew Blue cost reductions took effect. Top-line trends remained weak. Domestic comparable sales declined 1.3%, while International comparable sales fell 5.8%, and consolidated comparable sales declined 1.9%. Domestic online revenue grew 29.2% on a comparable basis, reaching $639 million. Management expects comparable sales to be negative in the low-single digits in the second and third quarters of fiscal 2015, and it expects the tax benefit to end, lifting the effective tax rate going forward and reducing year-over-year earnings per share by $0.09 to $0.10 in the fourth quarter. The balance sheet strengthened, with cash and cash equivalents of $2.57 billion, total shareholders' equity of $4.42 billion, and long-term debt of $1.60 billion, plus $44 million current. Operating cash flow was $308 million, and the company paid a $0.17 quarterly dividend. The company had no borrowings outstanding under its revolving credit agreements at May 30, 2014.

    Jun 9, 2014
  39. 2014-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 2, 2013

    Best Buy Co., Inc. filed this Form 10-Q for the third quarter of fiscal 2014, covering the period ended November 2, 2013. Revenue was $9.36 billion for the quarter, roughly flat versus $9.38 billion a year earlier, and operating income rose to $91 million from $2 million. Net earnings attributable to Best Buy shareholders were $54 million, or $0.16 diluted EPS, versus a net loss of $10 million a year earlier. The filing attributes the improvement mainly to lower SG&A from the company's Renew Blue cost reduction initiatives. Domestic comparable store sales grew 1.7% in the quarter, while International comparable store sales declined 6.4%, with the International segment posting an operating loss of $20 million. For the first nine months of fiscal 2014, revenue was $28.04 billion versus $29.09 billion, and operating income was $672 million versus $354 million. Results included $264 million of LCD-related settlement proceeds recognized in cost of goods sold in the second quarter, and the sale of the 50% interest in Best Buy Europe to Carphone Warehouse Group, completed June 26, 2013, which was presented as discontinued operations. Net earnings attributable to shareholders for the nine months were $239 million, or $0.69 diluted EPS. Balance sheet and liquidity improved: cash and cash equivalents were $2.17 billion at November 2, 2013, up from $1.83 billion at fiscal year-end, and short-term debt was zero. The company issued $500 million of 5.00% notes due 2018 and repaid $500 million of 2013 notes at maturity. Share repurchases remain suspended, with $4.0 billion available under the June 2011 program. Management stated that fourth-quarter results will face headwinds from price investments, $150 million to $200 million in incremental Renew Blue SG&A investments, higher mobile phone warranty costs, and changes to the Citibank private-label credit card economics.

    Dec 9, 2013
  40. 2014-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 3, 2013

    Best Buy Co., Inc. reported results for its second quarter of fiscal 2014, ended August 3, 2013, in this Form 10-Q filed September 9, 2013. Revenue was $9.30 billion for the quarter, compared with $9.34 billion a year earlier, and $18.68 billion for the six months, compared with $19.71 billion. Operating income rose to $413 million from $88 million, driven primarily by LCD-related legal settlements of $264 million recorded in cost of goods sold and a decline in restructuring charges to $7 million from $91 million. Net earnings attributable to Best Buy shareholders were $266 million, or $0.77 per diluted share, versus $12 million, or $0.04 per diluted share, a year earlier. Net earnings from continuing operations were $237 million, or $0.69 per diluted share, compared with $31 million, or $0.09. The quarter included the June 26, 2013 completion of the sale of the company's 50% interest in Best Buy Europe to Carphone Warehouse Group plc. The filing reports a $175 million impairment of that investment in the first quarter and a $123 million loss on sale of business for the six months. Adjusted diluted earnings per share from continuing operations were $0.32 for the quarter, versus $0.26 a year earlier, according to the company's non-GAAP reconciliation. Domestic comparable store sales declined 0.4% in the quarter, while International comparable store sales declined 1.8%. Balance sheet and liquidity: cash and cash equivalents were $1.91 billion at August 3, 2013. Total debt, including the current portion, was $1.68 billion, after the company retired $500 million of 2013 notes and issued $500 million of 5.00% notes due 2018. Share repurchases were suspended, with $4.0 billion remaining under the June 2011 authorization. The quarterly dividend was $0.17 per share. Management described Renew Blue, its six-priority turnaround plan, and said it expects pricing and SG&A investments, higher warranty costs, and a change in its private-label credit card economics to weigh on the third and fourth quarters of fiscal 2014.

    Sep 9, 2013
  41. 2014-Q1

    Best Buy Quarterly Report for Q2 Ended May 4, 2013

    Best Buy Co., Inc. reported a net loss attributable to Best Buy shareholders of $81 million, or $(0.24) per diluted share, for the first quarter of fiscal 2014 (ended May 4, 2013), compared with net earnings of $158 million, or $0.46 per diluted share, in the prior-year period. Revenue declined 9.6% to $9.38 billion from $10.37 billion, and comparable store sales declined 1.3%. Net earnings from continuing operations fell 42.6% to $97 million, and operating income decreased to $168 million from $264 million. The filing states the decline was largely due to an extra week of operations in the prior-year quarter (14 weeks versus 13), the shift of pre-Super Bowl sales into the fourth quarter, prior-year large-format store closures, a lower comparable store sales decline, and a reduced gross profit rate from investment in price competitiveness. The loss was driven by discontinued operations, where the loss was $170 million including noncontrolling interests. This reflected a $175 million non-tax-deductible impairment on the company's 50% interest in Best Buy Europe, following an April 29, 2013 agreement to sell that interest to Carphone Warehouse Group plc for net proceeds of £471 million ($733 million). The transaction is subject to CPW shareholder and European regulatory approval and is expected to close in the second quarter of fiscal 2014. Cash and cash equivalents fell to $908 million, and cash used in operating activities was $5 million, compared with $379 million provided in the prior-year period. Short-term debt was zero at May 4, 2013, and the company reported $1.686 billion of total debt, with a $500 million 2013 Notes maturity due July 15, 2013. The company's share repurchase program is suspended, with $4.0 billion remaining under the June 2011 authorization. The quarterly dividend was $0.17 per share. Moody's changed its outlook on Best Buy to Negative from Developing on May 28, 2013, and Fitch and Standard & Poor's also carry Negative outlooks. The filing also describes ongoing securities class actions and a trade secrets verdict under appeal, which the company says it intends to contest vigorously.

    Jun 7, 2013
  42. 2013-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 3, 2012

    Best Buy Co., Inc. reported results for its third quarter of fiscal 2013, the three months ended November 3, 2012, under a new fiscal calendar following a change in its fiscal year-end. Revenue was $10.75 billion, down from $11.15 billion a year earlier, with comparable store sales declining 4.3%. Gross profit fell to $2.59 billion from $2.85 billion, and the gross profit rate declined as a percentage of revenue. Operating income was $12 million versus $381 million in the prior-year quarter, and the company reported a net loss attributable to Best Buy Co., Inc. of $10 million, or $(0.03) per diluted share, compared with net earnings of $156 million a year earlier. Restructuring charges of $36 million in the quarter and $254 million for the first nine months, primarily tied to the Domestic segment's closure of large-format stores, weighed heavily on results. The International segment posted an operating loss for the quarter. For the first nine months, revenue was $32.91 billion and operating income was $307 million. Operating cash flow was negative $121 million, compared with $1.90 billion a year earlier, driven largely by higher inventory outflows and restructuring payments. Cash and cash equivalents fell to $309 million from $1.20 billion at March 3, 2012, while merchandise inventories rose to $8.16 billion from $5.73 billion. Share repurchases have been suspended for the remainder of fiscal 2013, and $4.0 billion remained available under the June 2011 authorization. Short-term debt was $310 million and long-term debt was $1.16 billion, plus current portion of long-term debt of $544 million. The filing also reports that on November 21, 2012, Standard & Poor's lowered its corporate credit rating to BB from BB+ with a negative outlook, Fitch lowered its rating to BB- with a negative outlook, and Moody's kept its Baa2 rating on Developing outlook. Legal matters include securities class actions and a shareholder derivative action, which the company believes are without merit. A trade secrets action resulted in a jury verdict awarding the plaintiff $22 million, plus $5 million in exemplary damages in December 2012, which the company intends to contest on appeal and does not expect to have a material effect on its financial position or results of operations.

    Dec 5, 2012
  43. 2013-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 4, 2012

    Best Buy Co., Inc. reported results for its second quarter of fiscal 2013, the three months ended August 4, 2012, under a newly adopted fiscal calendar following a fiscal year-end change. Revenue for the quarter was $10.55 billion, down from $10.86 billion in the prior-year period, and operating income fell to $33 million from $260 million, reflecting $91 million of restructuring charges and an operating loss of $50 million in the International segment. Net earnings attributable to Best Buy Co., Inc. were $12 million, or $0.04 per diluted share, compared with $128 million, or $0.34 per diluted share, a year earlier. For the six months ended August 4, 2012, revenue was $22.16 billion and net earnings attributable to Best Buy were $170 million, against $340 million in the prior year. Cash and cash equivalents declined to $680 million at August 4, 2012, from $1.20 billion at March 3, 2012, and operating cash flow was negative $222 million for the six months, compared with positive $1.17 billion a year earlier. Restructuring activity centered on the closure of approximately 50 large-format Best Buy stores in the U.S., with the company expecting additional pre-tax restructuring charges of between $25 million and $75 million. The filing also discloses that the company expects to suspend share repurchases for the rest of fiscal 2013, that the Board declared a quarterly dividend of $0.16 per share, and that Hubert Joly was appointed President and Chief Executive Officer effective September 4, 2012. The filing reports that Moody's affirmed its Baa2 rating with a Developing outlook, while Standard & Poor's and Fitch lowered Best Buy's ratings to BB+ on August 6, 2012, with negative watch statuses. Management reports that the company was in compliance with its financial covenants at August 4, 2012, and that it had no borrowings outstanding under its U.S. revolving credit agreements at that date.

    Sep 6, 2012
  44. 2013-Q1

    Best Buy Quarterly Report for Q2 Ended May 5, 2012

    Best Buy Co., Inc. reported its first quarter of fiscal 2013, the three months ended May 5, 2012, under a new fiscal calendar following a change in its fiscal year-end. Revenue rose to $11.61 billion from $11.37 billion, a 2.1% increase, but the filing attributes this mainly to an extra week of operations (14 weeks versus 13). Comparable store sales declined 5.3%, and operating income fell to $262 million from $460 million, with operating margin at 2.3% of revenue versus 4.0% a year earlier. The decline was driven by an operating loss in the International segment (-$33 million) and $127 million of restructuring charges in the Domestic segment, mainly tied to closing about 50 large-format Best Buy stores in the U.S. Net earnings attributable to Best Buy were $158 million, or $0.46 per diluted share, compared with $212 million, or $0.53, in the prior-year period. The balance sheet remained solid for a retailer of this size, with cash and cash equivalents of $1.39 billion, total assets of $16.01 billion and total shareholders' equity of $3.67 billion. Operating cash flow was $379 million, down from $1.34 billion, which management attributed mainly to a reduction in accounts payable. Share repurchases totaled $115 million during the quarter, leaving $4.11 billion available under the June 2011 program. The company stated it had no borrowings outstanding under its U.S. revolving credit facilities at May 5, 2012. Credit ratings were noted as BBB- (S&P, on CreditWatch negative), Baa2 (Moody's) and BBB- (Fitch, negative outlook). Management cited European macroeconomic pressures, the end of Chinese government stimulus programs, and product life-cycle declines in notebooks, televisions and gaming as drivers of weakness. Tablet and mobile phone sales were strong. The filing also discloses pending securities class action and shareholder derivative litigation over fiscal 2011 earnings guidance, which the company says is without merit and for which it cannot estimate a loss range.

    Jun 13, 2012
  45. 2012-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 26, 2011

    Best Buy Co., Inc. reported results for the third quarter of fiscal 2012 (ended November 26, 2011). Revenue rose to $12.10 billion, up 1.7%, from $11.89 billion, while operating income fell to $178 million from $385 million, or 1.5% of revenue versus 3.2%. The decline was driven by restructuring charges of $137 million in restructuring charges within SG&A-adjacent lines (total $150 million including $13 million of inventory write-downs), mainly tied to closing large-format Best Buy stores in the U.K., together with lower gross profit rates in the Domestic segment. Net earnings attributable to Best Buy fell to $154 million, or $0.42 per diluted share, from $217 million, or $0.54 per diluted share, a year earlier. For the first nine months, revenue was $34.39 billion and diluted EPS was $1.23, versus $1.50. The balance sheet shows cash and cash equivalents rising to $2.39 billion from $1.10 billion at fiscal year-end, following $2.63 billion of operating cash flow in the first nine months, driven largely by inventory reduction and normalization of accounts payable. Total debt increased with the issuance of $1 billion of notes in March 2011, and long-term debt reached $2.11 billion. The company repurchased $1.17 billion of common stock in the nine months and held $4.43 billion of remaining authorization under its June 2011 program. The filing highlights a pending transaction: Best Buy agreed to buy out Carphone Warehouse's interest in the Best Buy Europe profit share agreement for approximately $1.3 billion, subject to shareholder approval. Management indicated that, if approved, Best Buy Europe goodwill of approximately $1.2 billion would be substantially impaired in the fourth quarter. The filing also notes a $167 million acquisition of mindSHIFT Technologies, completed December 28, 2011, and a change in fiscal year-end beginning with fiscal 2013.

    Jan 3, 2012
  46. 2012-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 27, 2011

    Best Buy Co., Inc. reported net earnings attributable to Best Buy Co., Inc. of $177 million for the second quarter of fiscal 2012 (ended August 27, 2011), down from $254 million in the prior-year quarter, and $313 million for the first six months versus $409 million a year earlier. Revenue was essentially flat at $11.35 billion for the quarter, up 0.1% from $11.34 billion, and $22.29 billion for the six months, up 0.7%. Diluted EPS fell to $0.47 from $0.60 in the quarter and to $0.81 from $0.96 for the six months. Operating income declined 30.2% to $287 million in the quarter, with the gross profit rate down 0.4% of revenue and the SG&A rate up 0.7% of revenue. Management attributed the pressure to macroeconomic conditions, declining product life-cycles in televisions, notebook computers, gaming, movies and music, and promotional activity, while citing growth in tablets and appliances. Domestic comparable store sales fell 2.7% in the quarter, and International comparable store sales fell 3.2%. Cash position strengthened. Cash and cash equivalents rose to $2.04 billion from $1.10 billion at fiscal year-end, and cash provided by operating activities was $1.54 billion for the six months, compared with $84 million a year earlier, largely from normalization of accounts payable and receivables. Total debt increased to $2.53 billion, including $1.0 billion of new notes issued in March 2011 (2016 Notes at 3.75% and 2021 Notes at 5.50%). The company repurchased $863 million of common stock in the first six months under a new $5.0 billion authorization, leaving $4.75 billion available at August 27, 2011. Management also reported that Fitch lowered the company's rating to BBB- in June 2011, and that the company was in compliance with its financial covenants. A shareholder class action and related derivative suits remain pending, and the company intends to defend them vigorously.

    Sep 30, 2011
  47. 2012-Q1

    Best Buy Quarterly Report for Q2 Ended May 28, 2011

    Best Buy Co., Inc. reported first-quarter fiscal 2012 results for the three months ended May 28, 2011. Revenue rose to $10.94 billion from $10.79 billion, while gross profit fell to $2.77 billion from $2.79 billion and operating income declined to $282 million from $313 million. Net earnings attributable to Best Buy were $136 million, or $0.35 per diluted share, versus $155 million, or $0.36, a year earlier. Comparable store sales declined 1.7%, with the Domestic segment down 2.4% and the International segment up 0.4%. The Domestic segment's operating income fell to $234 million from $298 million, while the International segment's rose to $48 million from $15 million. Cash flow and liquidity improved notably. Cash provided by operating activities was $1.32 billion, compared with $169 million a year earlier, driven mainly by normalization of receivables and accounts payable. Cash and cash equivalents ended at $2.21 billion. The company issued $1.0 billion of notes in March 2011 (a 3.75% 2016 tranche and a 5.50% 2021 tranche), and long-term debt rose to $1.70 billion from $711 million at fiscal year-end. Share repurchases totaled $505 million for 16.6 million shares, and the Board authorized a new $5.0 billion repurchase program in June 2011 to replace the prior $5.5 billion program. The filing also discloses pending securities class actions and a shareholder derivative suit tied to fiscal 2011 earnings guidance, which the company says it will defend vigorously and for which it cannot provide meaningful quantification of financial impact. The company reports that Fitch lowered its rating to BBB-, with stable outlooks from all three agencies, and that the quarterly dividend will increase to $0.16 per share effective October 2011.

    Jul 1, 2011
  48. 2011-Q3

    Best Buy Quarterly Report for Q3 Ended Nov 27, 2010

    Best Buy Co., Inc. reported results for the third quarter of fiscal 2011 (ended November 27, 2010). Revenue was $11.89 billion, down 1.1% from $12.02 billion a year earlier, driven primarily by a 3.3% comparable store sales decline. Operating income rose $9 million, or 2.4%, to $385 million, with the operating income rate at 3.2% of revenue versus 3.1% in the prior-year period. Net earnings attributable to Best Buy were $217 million, or $0.54 per diluted share, compared with $227 million and $0.53 a year earlier. For the first nine months, revenue rose 2.6% to $34.02 billion, operating income rose $157 million, or 16.5%, to $1.1 billion, and diluted EPS was $1.50 versus $1.27. Balance sheet and cash flow shifted notably during the period. Merchandise inventories increased to $10.06 billion from $5.49 billion at fiscal year-end, with accounts payable rising to $9.86 billion. Cash and cash equivalents fell to $925 million from $1.83 billion at February 27, 2010, as the company repurchased 30.7 million shares for $1.13 billion in the nine months. Operating cash flow was $545 million, versus $679 million in the prior-year nine months. Total debt including current portion was $1.82 billion, and the company reported a debt to net earnings ratio of 1.2 and an adjusted debt to EBITDAR ratio of 2.4. The company's auction-rate securities portfolio had a par value of $141 million and fair value of $131 million at quarter end, and the Credit Facility's $500 million drawn balance was fully repaid after quarter end. Segment performance was mixed. Domestic revenue declined 2.5% in the quarter on a 5.0% comparable store sales decline, though gross profit rate improved, while International revenue grew 2.8% with comparable store sales up 2.3% and operating income of $45 million versus $23 million a year earlier.

    Jan 5, 2011
  49. 2011-Q2

    Best Buy Quarterly Report for Q3 Ended Aug 28, 2010

    Best Buy Co., Inc. reported its second quarter of fiscal 2011 (ended August 28, 2010) with revenue of $11.34 billion for the three months, up 2.9% from the prior-year period, and operating income of $411 million, or 3.6% of revenue, compared with 2.5% a year earlier. Net earnings attributable to Best Buy were $254 million, or $0.60 per diluted share, versus $0.37 a year earlier. For the first six months, revenue was $22.13 billion, up 4.8%, and operating income was $724 million, or 3.3% of revenue. Management said the consumer environment remained difficult and uncertain, with flat comparable store sales for the quarter (down 0.1%), though China and other International markets showed growth. Gross profit rate improved, partly offset by a higher SG&A rate. Cash generation weakened in the first half: operating cash flow was $84 million versus $238 million a year earlier, and cash used in financing activities was $905 million, driven mainly by $667 million of share repurchases. Cash and cash equivalents ended at $843 million. Short-term debt fell to $383 million from $1.09 billion a year earlier, and the debt to net earnings ratio improved to 1.0 from 2.3. The company had no borrowings outstanding under its $2.3 billion unsecured revolving credit facility at August 28, 2010, and $1.795 billion remained available under its share repurchase program. The filing also details $144 million (par value) of auction-rate securities that remain subject to failed auctions, carried at a fair value of $134 million, and a pending pay-out of a quarterly dividend of $0.15 per share. Credit ratings were stable, with Fitch at BBB+, Moody's at Baa2 and Standard & Poor's at BBB-.

    Oct 7, 2010
  50. 2011-Q1

    Best Buy Quarterly Report for Q2 Ended May 29, 2010

    Best Buy Co., Inc. filed this Form 10-Q on July 8, 2010 for the first quarter of fiscal 2011, ended May 29, 2010. Revenue rose 6.9% to $10.787 billion from $10.095 billion, driven by net new stores, a 2.8% comparable store sales gain and favorable foreign currency effects. Operating income increased to $313 million from $296 million, but as a percentage of revenue it was flat at 2.9%. Net earnings attributable to Best Buy were $155 million, or $0.36 per diluted share, compared with $153 million, or $0.36, a year earlier. The prior-year quarter included $52 million of restructuring charges, and none were recorded this quarter. Cash flow and liquidity improved. Operating activities provided $169 million, compared with $53 million used in the prior-year period. Cash and cash equivalents rose to $1.239 billion from $535 million a year earlier, and short-term debt fell to $197 million from $1.017 billion. The debt-to-capitalization ratio declined to 17% from 31% a year earlier. Best Buy repurchased $111 million of common stock during the quarter and has $2.389 billion remaining under its June 2007 program. The quarterly dividend was $0.14 per share, and the filing reports an increase to $0.15 effective with the October 2010 dividend. Risk items include $233 million of auction-rate securities, all of which were subject to failed auctions at quarter end, and a pending sale of the Speakeasy business to be combined with Covad Communications, expected to close in the third quarter of calendar 2010. The filing also discloses a pending class action, Holloway v. Best Buy, alleging employment discrimination, which the company says is without merit.

    Jul 8, 2010