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Best Buy 8-K Report, Financial Results (Nov 26, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 26, 2024
Period End
November 26, 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 November 26, 2024. Cited figures are marked; the original filing is the authoritative source.

Best Buy Co., Inc. reported results for the 13-week third quarter ended November 2, 2024 (Q3 FY25).

Revenue was $9.45 billiona, down from $9.76 billion in Q3 FY24, and enterprise comparable sales declined 2.9% versus a 6.9% decline a year earlier. GAAP diluted EPS rose to $1.26 from $1.21, while non-GAAP diluted EPS fell to $1.26 from $1.29. Non-GAAP operating income as a percentage of revenue was 3.7% versus 3.8%.

Management said the second half of the quarter was softer than expected due to macro uncertainty, customers waiting for deals and sales events, and election-related distraction in non-essential categories, but said customer demand increased again in the first few weeks of Q4. The company lowered its FY25 revenue guidance to $41.1 billion to $41.5 billionb (from $41.3 billion to $41.9 billion) and its comparable sales guidance to a decline of 3.5% to 2.5% (from a decline of 3.0% to 1.5%). Non-GAAP diluted EPS guidance narrowed to $6.10 to $6.25 from $6.10 to $6.35, and the non-GAAP operating income rate of 4.1% to 4.2% was unchanged.

For Q4 FY25, the company expects comparable sales flat to down 3%c and a non-GAAP operating income rate of 4.6% to 4.8%. Capital returns continued.

The board authorized a regular quarterly dividend of $0.94d per share, payable January 7, 2025, to holders of record on December 17, 2024. Year to date, the company returned $892 million to shareholders, including $607 million in dividends and $285 million in share repurchases, and still expects to spend approximately $500 million on repurchases in FY25.

02—Key points

Key Highlights

  1. Q3 FY25 revenue of $9,445 million declined from $9,756 million, with enterprise comparable sales down 2.9% versus a 6.9% decline in Q3 FY24.
  2. Domestic comparable sales declined 2.8%, with domestic online comparable sales down 1.0%; domestic online revenue was $2.73 billion, or 31.4% of domestic revenue.
  3. Domestic gross profit rate improved to 23.6% from 22.9%, driven mainly by services, including membership offerings, partly offset by lower credit card profit-sharing revenue.
  4. GAAP diluted EPS was $1.26 versus $1.21, while non-GAAP diluted EPS was $1.26 versus $1.29 a year earlier.
  5. FY25 guidance was lowered for revenue ($41.1 billion to $41.5 billion) and comparable sales (down 3.5% to 2.5%), and non-GAAP diluted EPS guidance was narrowed to $6.10 to $6.25 from $6.10 to $6.35.
  6. Q4 FY25 guidance calls for comparable sales flat to down 3% and a non-GAAP operating income rate of 4.6% to 4.8%.
  7. The quarterly dividend is $0.94 per share, and the company expects to spend approximately $500 million on share repurchases in FY25.

03—Questions

Frequently Asked Questions

  1. Why did Best Buy lower its FY25 guidance?

    The company adjusted its full-year comparable sales guidance to a decline of 2.5% to 3.5%, from a decline of 1.5% to 3.0% previously. Management cited softer-than-expected demand in the second half of Q3, driven by macro uncertainty, customers waiting for deals and sales events, and election-related distraction, particularly in non-essential categories.

  2. How did Best Buy perform in the third quarter?

    Revenue was $9,445 million versus $9,756 million a year earlier. Enterprise comparable sales declined 2.9% versus 6.9% in Q3 FY24. GAAP diluted EPS was $1.26 versus $1.21, and non-GAAP diluted EPS was $1.26 versus $1.29. Net earnings were $273 million versus $263 million.

  3. What trends did the company report for the first weeks of Q4?

    Management said that in the first few weeks of Q4, as holiday sales began and the election was behind it, customer demand increased again. For the full Q4, the company expects comparable sales flat to down 3% and a non-GAAP operating income rate of 4.6% to 4.8%.

  4. What are Best Buy's shareholder return plans?

    The board authorized a regular quarterly cash dividend of $0.94 per common share, payable January 7, 2025, to shareholders of record as of December 17, 2024. Year to date, the company has returned $892 million, including $607 million in dividends and $285 million in share repurchases, and expects to spend approximately $500 million on repurchases in FY25.

  5. How did the International segment perform?

    International revenue was $748 million, down 1.6% versus last year, driven by a 3.7% comparable sales decline and negative foreign exchange impact, partly offset by revenue from new Best Buy Express locations in Canada. The International gross profit rate rose to 22.5% from 22.1%, while SG&A rose to $155 million from $151 million.

04—Continue

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