Best Buy Co Inc Reports Q2 FY25 Financial Results
Best Buy Co., Inc. Reports Q2 FY25 Financial Results
Best Buy Co., Inc. (NYSE:BBY) has announced its financial results for the second quarter of fiscal year 2025, which ended on August 3, 2024.
Key Financial Metrics
Metric | Q2 FY25 | Q2 FY24 | YoY Change | Consensus Estimates | Q1 FY25 | QoQ Change |
---|---|---|---|---|---|---|
Total Revenue | $9.29B | N/A | N/A | $9.24B | N/A | N/A |
GAAP Diluted EPS | $1.34 | N/A | +7% | N/A | N/A | N/A |
Non-GAAP Diluted EPS | $1.34 | $1.22 | +10% | $1.16 | N/A | N/A |
Interpretation Best Buy delivered better-than-expected sales and profitability. Total revenue reached $9.29 billion, slightly above the Wall Street consensus estimate of $9.24 billion. Both GAAP and non-GAAP diluted EPS exceeded forecasts, with Non-GAAP EPS surging by 10% year-over-year to $1.34, outperforming the estimate of $1.16.
Revenue Performance by Segments
Segment | Q2 FY25 Revenue | YoY Change | Comments |
---|---|---|---|
Domestic | $8.62B | -3.0% | Decline primarily due to appliances and gaming; growth in tablets and computing |
International | $665M | -4.0% | Negative impact from foreign exchange rates; comparable sales decline of 1.8% |
Interpretation Domestic revenue decreased by 3.0% year-over-year. This decline was largely driven by reduced sales in appliances and gaming, offset by gains in the tablets, computing, and services categories. International revenues also saw a 4.0% drop, influenced by adverse foreign exchange rates.
Key Developments and Operational Highlights
- Comparable Sales : Declined by 2.3%.
- Online Revenue : Domestic online revenue for Q2 FY25 was $2.72 billion, accounting for 31.5% of Domestic revenue.
- Gross Profit Rate : Domestic gross profit rate was 23.5%, up from 23.1% last year.
- SG&A Expenses : Domestic SG&A on a non-GAAP basis decreased to $1.66 billion.
- International Gross Profit Rate : Decreased to 23.9%, mainly due to lower product margins and higher supply chain costs.
Officer Comments
Corie Barry, CEO : "We are reporting better-than-expected sales and profitability results for the second quarter. Strong results in our Domestic tablet and computing categories with comparable sales growth of 6% versus last year. We're focused on enhancing customer experience and expanding our non-GAAP operating income rate."
Matt Bilunas, CFO : "As we look to the back half of the year, we expect our industry to continue to show increasing stabilization. Updating our annual comparable sales guidance to a decline of 1.5% to 3.0% and raising our non-GAAP diluted EPS guidance to $6.10 to $6.35."
Dividends and Share Repurchase Programs
- Dividends : Announced a quarterly cash dividend of $0.94 per share, payable on October 10, 2024.
- Share Repurchases : Returned $98 million through share repurchases in Q2 FY25, totaling $553 million year-to-date in FY25. Expected share repurchases for FY25 approximated at $500 million.
Forward Guidance
- Revenue : Updated to $41.3 billion - $41.9 billion.
- Comparable Sales : Adjusted to decline between 1.5% and 3.0%.
- Non-GAAP Diluted EPS : Raised to $6.10 - $6.35.
- Capital Expenditures : Approximately $750 million, unchanged.
Stock Price Movement
Following the earnings release, Best Buy's stock observed an increase of 1.37%.
Summary Best Buy's Q2 FY25 results were strong, bolstered by robust performance in select categories despite some declines. The company has raised its full-year EPS guidance, indicating confidence in ongoing operational strategies and market positioning.
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