Best Buy reports first-quarter revenues down 6%
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Getting your Trinity Audio player ready...
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Best Buy Co., Inc announced results for the 13-week first quarter ended May 4, 2024, as compared to the 13-week first quarter ended April 29, 2023.
Domestic revenue of $8.20 billion decreased 6.8% versus last year primarily driven by a comparable sales decline of 6.3%. From a merchandising perspective, the largest drivers of the comparable sales decline on a weighted basis were appliances, home theater, gaming, and mobile phones. These drivers were partially offset by growth in the services and laptop categories.
Domestic online revenue of $2.52 billion decreased 6.1% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 30.8% versus 30.5% last year. International revenue of $644 million decreased 3.3% versus last year driven by a comparable sales decline of 3.3%.
“Today we are reporting better-than-expected Q1 profitability,” said Corie Barry, CEO, Best Buy. “Through strong execution, we continued to manage our profitability while at the same time preparing for future growth. We made progress on our FY25 priorities, grew our paid membership base, and drove improvements in our customer experiences.
‘The mix of macro factors continued to create a challenging sales environment for our category during the quarter and our sales were slightly softer than our expectations. We will continue to navigate the environment while remaining focused and energized about our purpose to Enrich Lives through Technology. There is exciting new innovation ahead and we intend to strengthen our position in key categories like computing, home theater and major appliances through our differentiated experiences, pointed marketing spend and competitive pricing.”
Q1 FY25 |
Q1 FY24 |
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| Revenue ($ in millions) | ||
| Enterprise | $8,847 | $9,467 |
| Domestic segment | $8,203 | $8,801 |
| International segment | $644 | $666 |
| Enterprise comparable sales % change1 | (6.1)% | (10.1)% |
| Domestic comparable sales % change1 | (6.3)% | (10.4)% |
| Domestic comparable online sales % change1 | (6.1)% | (12.1)% |
| International comparable sales % change1 | (3.3)% | (5.5)% |
| Operating Income | ||
| GAAP operating income as a % of revenue | 3.5% | 3.3% |
| Non-GAAP operating income as a % of revenue | 3.8% | 3.4% |
| Diluted Earnings per Share (“EPS”) | ||
| GAAP diluted EPS | $1.13 | $1.11 |
| Non-GAAP diluted EPS | $1.20 | $1.15 |
For GAAP to non-GAAP reconciliations of the measures referred to in the above table, please refer to the attached supporting schedule.
“As we look to the rest of the year, we continue to expect sequential improvement in our comparable sales performance, however, we believe we are trending towards the midpoint of our annual comparable sales guidance,” said Matt Bilunas, Best Buy CFO. “Even at the midpoint of the comparable sales guidance, we expect to deliver profitability at the high end of our non-GAAP operating income rate guidance due to a higher gross profit rate in our membership and services offerings.
“For Q2 FY25, we expect comparable sales to decline by approximately 3% and our non-GAAP operating income rate to be approximately 3.5%.