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Best Buy 8-K Report, Financial Results (Feb 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 29, 2024
Period End
February 29, 2024
Security
BBY
In the 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 · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Best Buy Co., Inc. (NYSE: BBY) reported results for its 14-week fourth quarter ended February 3, 2024 (Q4 FY24), compared with the 13-week Q4 FY23.

Enterprise revenue was $14.65 billiona, down from $14.74 billion, with enterprise comparable sales declining 4.8%. GAAP diluted EPS was $2.12 versus $2.23 a year earlier, and non-GAAP diluted EPS was $2.72 versus $2.61. For the full 53-week FY24, revenue was $43.45 billion, GAAP diluted EPS was $5.68, and non-GAAP diluted EPS was $6.37.

The company said it delivered annual profitability at the high end of its original guidance range even though sales came in below that range. The company issued FY25 guidance calling for revenue of $41.3 billion to $42.6 billionb, comparable sales of (3.0%) to 0.0%, and non-GAAP diluted EPS of $5.75 to $6.20. Management estimated the extra week in FY24 added approximately $735 million of revenue, about 15 basis points of non-GAAP operating income rate, and about $0.30 of non-GAAP diluted EPS.

Q4 FY24 included $169 millionc of restructuring charges tied to an enterprise-wide initiative, with a further $10 million to $30 million expected in FY25. Best Buy also announced a 2% increase in its regular quarterly dividend to $0.94 per share, payable April 11, 2024.

The company returned $1.1 billiond to shareholders in FY24 through $801 million of dividends and $340 million of share repurchases. The earnings release itself is furnished as Exhibit 99 under Item 2.02 and is not deemed filed for Section 18 purposes.

02—Key points

Key Highlights

  1. Q4 FY24 enterprise revenue of $14.65 billion versus $14.74 billion in Q4 FY23; enterprise comparable sales declined 4.8%.
  2. GAAP diluted EPS of $2.12 (versus $2.23) and non-GAAP diluted EPS of $2.72 (versus $2.61) for Q4 FY24.
  3. FY24 (53 weeks) GAAP diluted EPS of $5.68 and non-GAAP diluted EPS of $6.37, versus $6.29 and $7.08 in FY23.
  4. FY25 guidance: revenue of $41.3 billion to $42.6 billion, comparable sales of (3.0%) to 0.0%, and non-GAAP diluted EPS of $5.75 to $6.20.
  5. Q1 FY25 outlook: comparable sales expected to decline by approximately 5% and non-GAAP operating income rate of approximately 3.4%.
  6. Quarterly dividend increased 2% to $0.94 per share; FY24 shareholder returns totaled $1.1 billion, including $801 million in dividends and $340 million in share repurchases.
  7. Enterprise-wide restructuring initiative generated $169 million of Q4 FY24 charges, with approximately $10 million to $30 million more expected in FY25.

03—Questions

Frequently Asked Questions

  1. How did Best Buy perform in the fourth quarter of fiscal 2024?

    Enterprise revenue was $14.65 billion, down slightly from $14.74 billion a year earlier, and enterprise comparable sales fell 4.8%. The quarter had 14 weeks versus 13 in the prior-year period. GAAP diluted EPS was $2.12, while non-GAAP diluted EPS was $2.72, up from $2.61. The filing attributes the extra week to about $675 million of Domestic revenue and about $60 million of International revenue.

  2. What is Best Buy's outlook for fiscal 2025?

    The company guided to revenue of $41.3 billion to $42.6 billion, comparable sales of (3.0%) to 0.0%, a non-GAAP operating income rate of 3.9% to 4.1% for the enterprise, and non-GAAP diluted EPS of $5.75 to $6.20. It expects capital expenditures of $750 million to $800 million and a non-GAAP effective tax rate of approximately 25.0%. FY25 has 52 weeks versus 53 in FY24.

  3. Why did Best Buy incur restructuring charges?

    The company incurred $169 million of restructuring charges in Q4 FY24, mainly for employee termination benefits under an enterprise-wide initiative. The initiative aims to align field labor with where customers shop, redirect corporate resources, and right-size resources to the FY25 revenue outlook. Management expects up to $135 million of termination benefits to be paid in FY25, with the rest in FY26.

  4. What did Best Buy say about shareholder returns?

    The board approved a 2% increase in the regular quarterly dividend to $0.94 per share, payable April 11, 2024, to shareholders of record as of March 21, 2024. In FY24, Best Buy returned $1.1 billion to shareholders, consisting of $801 million in dividends and $340 million in share repurchases.

  5. What drove the decline in Domestic comparable sales?

    Domestic comparable sales fell 5.1% in Q4 FY24. The company said the largest drivers of the decline on a weighted basis were home theater, appliances, mobile phones and tablets, partially offset by growth in gaming. Domestic gross profit rate improved to 20.4% from 19.8%, primarily due to membership offerings and Health initiatives.

04—Continue

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