01—Abstract
Summary
Summary of the 8-K filed March 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Best Buy Co., Inc. (NYSE: BBY) reported results for its 13-week fourth quarter ended February 1, 2025 (Q4 FY25), compared with the 14-week Q4 FY24.
Enterprise revenue was $13.95 billiona versus $14.65 billion, and enterprise comparable sales increased 0.5%. GAAP diluted EPS was $0.54, which included a $475 million pre-tax non-cash goodwill impairment related to Best Buy Health; adjusted diluted EPS was $2.58 versus $2.72 a year earlier. The company states that the extra week in Q4 FY24 added approximately $735 million in revenue and approximately $0.30 of adjusted diluted EPS to the prior full year.
For FY26, Best Buy guided to revenue of $41.4 billion to $42.2 billionb, comparable sales of 0.0% to 2.0%, an enterprise adjusted operating income rate of 4.2% to 4.4%, and adjusted diluted EPS of $6.20 to $6.60. Guidance excludes the impact of recently implemented or proposed tariffs. For Q1 FY26, the company expects comparable sales to be slightly down year over year and an adjusted operating income rate of approximately 3.4%.
The board approved a 1% increase in the regular quarterly dividend to $0.95c per share, payable April 15, 2025. For full-year FY25, the company returned $1.3 billion to shareholders through $807 million in dividends and $500 million in share repurchases, and expects to spend approximately $300 million on repurchases in FY26.
02—Key points
Key Highlights
- Q4 FY25 enterprise revenue of $13.95 billion, down from $14.65 billion in the 14-week Q4 FY24; enterprise comparable sales rose 0.5%.
- GAAP diluted EPS of $0.54 included a $475 million pre-tax goodwill impairment tied to Best Buy Health; adjusted diluted EPS was $2.58 versus $2.72 last year.
- Domestic comparable sales increased 0.2%, led by computing, tablets and services; domestic online comparable sales rose 2.6%.
- International comparable sales increased 3.8%, and the International gross profit rate improved to 21.4% from 21.0%.
- FY26 guidance: revenue of $41.4 billion to $42.2 billion, comparable sales of 0.0% to 2.0%, and adjusted diluted EPS of $6.20 to $6.60, excluding tariff impacts.
- Quarterly dividend increased 1% to $0.95 per share; the company expects about $300 million in FY26 share repurchases.
- Q1 FY26 outlook calls for slightly lower comparable sales and an adjusted operating income rate of approximately 3.4%.
03—Questions
Frequently Asked Questions
Why did GAAP diluted EPS fall so sharply in Q4 FY25?
GAAP diluted EPS was $0.54 versus $2.12 a year earlier, primarily because of a $475 million pre-tax non-cash goodwill impairment related to the Best Buy Health reporting unit. The impairment reflects downward revisions to long-term financial projections for that unit. The GAAP effective tax rate was 47.2% because the impairment was partly nondeductible.
How much did the 53rd week affect prior-year results?
The filing states that the extra week in Q4 FY24 added approximately $735 million in revenue, approximately 15 basis points of adjusted operating income rate, and approximately $0.30 of adjusted diluted EPS to the full-year FY24 results. Comparable sales for FY24 exclude this extra week.
What is Best Buy guiding for FY26?
Best Buy expects FY26 revenue of $41.4 billion to $42.2 billion, comparable sales of 0.0% to 2.0% with growth weighted to the second half, an enterprise adjusted operating income rate of 4.2% to 4.4%, and adjusted diluted EPS of $6.20 to $6.60. Capital expenditures are expected to be $700 million to $750 million. The guidance does not include the impact of recently implemented or proposed tariffs.
What are the capital return plans?
The regular quarterly dividend was increased 1% to $0.95 per share, payable April 15, 2025 to shareholders of record as of March 25, 2025. In FY25, the company returned $1.3 billion through $807 million of dividends and $500 million of share repurchases, and expects to spend approximately $300 million on share repurchases in FY26.
04—Continue