Best Buy Co., Inc
Quarterly domestic revenue of $8.62 billion decreased 3.0% year-over-year. Comparable sales fell 2.3%.
The company incurred $7 million of restructuring charges in the quarter.
Domestic online revenue of $2.72 billion decreased 1.6% on a comparable basis.
From a merchandising perspective, the largest drivers of the decline in comparable sales on a weighted basis were appliances, home theater, and gaming. Growth in the tablets, computing and services categories partially offset these drivers.
The domestic gross profit rate was 23.5%, up from 23.1% last year, due to improved financial performance in the company's services category, including its membership offerings partially offset by lower product margin rates.
International revenue of $665 million decreased 4.0% compared to last year. The international gross profit rate was 23.9%, compared to 24.2% last year. The lower gross profit rate was primarily due to unfavorable product margin rates.
Dividend: The firm approved a regular quarterly dividend of $0.94 per share.
CEO Corie Barry: "We delivered strong results in our Domestic tablet and computing categories, which together posted comparable sales growth of 6% versus last year."
Outlook: Best Buy raised the fiscal 2025 adjusted EPS outlook to $6.10-$6.35 (prior $5.75-$6.20) versus the $6.08 estimate. The company cut the high end of its prior revenue outlook to $41.3 billion-$41.9 billion (prior $41.3 billion-$42.6 billion) versus the $41.81 billion estimate.
For the third quarter of fiscal 2025, the company expects comparable sales to decline by approximately 1.0% and the adjusted operating income rate to be approximately 3.7%.
Best Buy stock gained over 14% in the last 12 months.
Price Action: BBY shares were trading higher by 13.60% to $99.71 premarket at the last check on Thursday.
