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Apr 30, 2022

Best Buy Q1 2023 Earnings Report

Best Buy's Q1 2023 earnings were impacted by macroeconomic conditions, resulting in a slight sales decrease compared to expectations. The company is adapting to the changing environment and continuing to invest in its future.

Key Takeaways

Best Buy reported Q1 FY23 results with a revenue of $10.65 billion and GAAP diluted EPS of $1.49. Comparable sales decreased by 8.0% compared to the previous year. The company is revising its full-year financial guidance due to worsening macro conditions.

Enterprise comparable sales decreased 8.0% compared to 37.2% growth in Q1 FY22.

GAAP diluted EPS was reported at $1.49, while non-GAAP diluted EPS was $1.57.

The company is revising its full-year financial guidance to reflect current trends.

Domestic revenue decreased 8.7%, driven by a comparable sales decline of 8.5%.

Total Revenue
$10.6B
Previous year: $11.6B
-8.5%
EPS
$1.57
Previous year: $2.23
-29.6%
Domestic Comp Sales
-8.5%
Previous year: 37.9%
-122.4%
International Comp Sales
-1.4%
Previous year: 27.8%
-105.0%
Gross Profit
$2.35B
Previous year: $2.72B
-13.3%
Cash and Equivalents
$640M
Previous year: $4.28B
-85.0%
Free Cash Flow
-$1.6B
Previous year: -$56M
+2755.4%
Total Assets
$15.3B
Previous year: $17.7B
-13.9%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy is updating its FY23 financial guidance to reflect current market trends. The company anticipates comparable sales and the year-over-year decline in non-GAAP operating income rate will be very similar to the first quarter results.

Positive Outlook

  • Revenue of $48.3 billion to $49.9 billion
  • Share repurchases of approximately $1.5 billion
  • Non-GAAP effective income tax rate of approximately 24.0%

Challenges Ahead

  • Comparable sales decline of 3.0% to 6.0%
  • Enterprise non-GAAP operating income rate of approximately 5.2% to 5.4%
  • Non-GAAP diluted EPS of $8.40 to $9.00

Revenue & Expenses

Visualization of income flow from segment revenue to net income