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

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 29, 2024
Period End
August 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 August 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Best Buy Co., Inc. reported results for its second quarter ended August 3, 2024 (Q2 FY25).

Enterprise revenue was $9.288 billiona, down from $9.583 billion a year earlier, and enterprise comparable sales declined 2.3% (versus a 6.2% decline in Q2 FY24). GAAP diluted EPS rose to $1.34 from $1.25, and non-GAAP diluted EPS was $1.34 versus $1.22. Gross profit was $2.186 billion, a gross profit rate of 23.5% versus 23.2% a year earlier.

Operating income was $383 millionb (4.1% of revenue) on a GAAP basis, compared with $348 million (3.6%) a year earlier. Management raised its FY25 non-GAAP diluted EPS guidance to $6.10 to $6.35, from $5.75 to $6.20 previously. It narrowed the comparable sales outlook to a decline of 1.5% to 3.0%, from a decline of 3.0% to flat, and lowered the revenue range to $41.3 billion to $41.9 billion from $41.3 billion to $42.6 billion.

For Q3 FY25, the company expects comparable sales to decline by approximately 1.0% and a non-GAAP operating income rate of approximately 3.7%. The filing notes FY25 has 52 weeks versus 53 in FY24, with the extra week estimated to have added approximately $735 millionc in revenue and approximately $0.30 of non-GAAP diluted EPS to FY24 results. Capital returns for the quarter totaled $301 million, including $203 million in dividends and $98 million in share repurchases.

The board authorized a regular quarterly dividend of $0.94d per share, payable October 10, 2024, and the company expects to spend approximately $500 million on share repurchases in FY25. Cash and cash equivalents were $1.387 billion at quarter end.

02—Key points

Key Highlights

  1. Enterprise comparable sales declined 2.3% in Q2 FY25, an improvement from the 6.2% decline in Q2 FY24.
  2. GAAP diluted EPS was $1.34, up from $1.25; non-GAAP diluted EPS was $1.34, up from $1.22.
  3. Enterprise revenue of $9.288 billion declined from $9.583 billion; Domestic revenue was $8.623 billion and International revenue was $665 million.
  4. FY25 non-GAAP diluted EPS guidance was raised to $6.10–$6.35 from $5.75–$6.20, and comparable sales guidance narrowed to a decline of 1.5%–3.0%.
  5. FY25 revenue guidance was lowered to $41.3–$41.9 billion from $41.3–$42.6 billion.
  6. Q3 FY25 outlook calls for comparable sales decline of approximately 1.0% and non-GAAP operating income rate of approximately 3.7%.
  7. Quarterly dividend of $0.94 per share declared, payable October 10, 2024; approximately $500 million in share repurchases expected in FY25.

03—Questions

Frequently Asked Questions

  1. Why did Best Buy raise its EPS guidance while lowering its revenue outlook?

    The filing states management is raising non-GAAP diluted EPS guidance because it largely flows through the better-than-expected profitability of the first half. The revenue range was lowered to $41.3–$41.9 billion from $41.3–$42.6 billion, and the non-GAAP operating income rate guidance was raised to 4.1%–4.2% from 3.9%–4.1%.

  2. How did Best Buy's sales perform by segment?

    Domestic revenue of $8.62 billion decreased 3.0% on a comparable sales decline of 2.3%, with appliances, home theater and gaming as the largest drags, partly offset by tablets, computing and services. International revenue of $665 million decreased 4.0%, mainly due to foreign exchange and a comparable sales decline of 1.8%.

  3. What is the impact of the 53rd week in FY24 on FY25 comparisons?

    FY25 has 52 weeks compared with 53 in FY24. The company estimates the extra week added approximately $735 million in revenue, approximately 15 basis points of non-GAAP operating income rate, and approximately $0.30 of non-GAAP diluted EPS to full-year FY24 results.

  4. How much did Best Buy return to shareholders this quarter?

    In Q2 FY25 the company returned $301 million, including $203 million in dividends and $98 million in share repurchases. Year to date it returned $553 million, including $405 million in dividends and $148 million in repurchases.

04—Continue

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