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Apr 29, 2023
Best Buy Q1 2024 Earnings Report
Best Buy's Q1 2024 sales aligned with expectations, profitability exceeded expectations, demonstrating strong operational execution.
Key Takeaways
Best Buy reported Q1 FY24 results with revenue of $9.47 billion and GAAP diluted EPS of $1.11. The company's sales performance aligned with expectations, and profitability was better than expected. The company is maintaining its full-year guidance.
Q1 sales results were in line with expectations.
Profitability was better than expected due to strong operational execution.
Customers are feeling cautious and making tradeoff decisions due to high inflation and low consumer confidence.
Company is balancing adjusting to current industry sales trends with investing in future opportunities.
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’s guidance for FY24 remains unchanged from last quarter. Comparable sales are expected to decline between 6% and 8% and non-GAAP operating income rate to be approximately 3% or slightly higher for Q2.
Positive Outlook
- Revenue of $43.8 billion to $45.2 billion
- Comparable sales decline of 3.0% to 6.0%
- Enterprise non-GAAP operating income rate of 3.7% to 4.1%
- Non-GAAP effective income tax rate of approximately 24.5%
- Non-GAAP diluted EPS of $5.70 to $6.50
Challenges Ahead
- Consumer electronics industry would continue to feel the pressure of the broader macro environment
- High degree of uncertainty as it relates to the consumer
- Comparable sales to decline in the range of 6% to 8% for Q2
- Non-GAAP operating income rate to be approximately 3% or slightly higher for Q2
- Preparing for a number of scenarios within our annual guidance range
Revenue & Expenses
Visualization of income flow from segment revenue to net income