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May 01, 2021
Best Buy Q1 2022 Earnings Report
Best Buy reported better-than-expected first quarter results, with enterprise comparable sales increasing by 37.2% and GAAP diluted EPS increasing by 280% to $2.32. The company raised its full-year enterprise comparable sales growth outlook to a range of 3% to 6%.
Key Takeaways
Best Buy's Q1 FY22 results exceeded expectations, driven by extraordinarily high customer demand for technology products and services. The company's enterprise comparable sales increased by 37.2%, and GAAP diluted EPS increased by 280% to $2.32. Due to the strong start to the year, Best Buy raised its full-year enterprise comparable sales growth outlook to a range of 3% to 6%.
Enterprise comparable sales increased 37.2%.
GAAP diluted EPS increased 280% to $2.32.
Non-GAAP diluted EPS increased 233% to $2.23.
Full-year enterprise comparable sales growth outlook raised to a range of 3% to 6%.
Best Buy
Best Buy
Best Buy Revenue by Segment
Best Buy Revenue by Geographic Location
Revenue by Segment
Domestic segment Revenue
CapyFin.comInternational segment Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Best Buy expects enterprise comparable sales growth of approximately 17% and a non-GAAP gross profit rate approximately flat to the Q2 FY21 rate of 22.9%. Enterprise non-GAAP SG&A growth is expected to be approximately 20%. For the full year, Best Buy anticipates enterprise comparable sales growth of 3% to 6%.
Positive Outlook
- Enterprise comparable sales growth of approximately 17% in Q2 FY22.
- Enterprise non-GAAP gross profit rate approximately flat to the Q2 FY21 rate of 22.9%.
- Enterprise non-GAAP SG&A growth of approximately 20%.
- Enterprise comparable sales growth of 3% to 6% for FY22.
- Enterprise non-GAAP gross profit rate approximately flat to the FY21 rate of 22.4%.
Challenges Ahead
- Shopping behavior is expected to evolve as customers spend more time on activities like eating out and traveling.
- The impact of evolving shopping behavior on Best Buy's business is uncertain.
- Difficult to predict the impact of lapping particularly strong sales in the back half of last year.
- Original FY22 back-half sales assumptions remain unchanged.
- Uncertainty and inherent difficulty predicting the occurrence and financial impact of non-GAAP adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income