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May 04, 2024
Best Buy Q1 2025 Earnings Report
Best Buy's Q1 2025 earnings were reported, with comparable sales declining by 6.1% and GAAP diluted EPS increasing by 2% to $1.13.
Key Takeaways
Best Buy reported better-than-expected Q1 profitability despite a challenging sales environment. The company's GAAP diluted EPS increased by 2% to $1.13, and non-GAAP diluted EPS increased by 4% to $1.20. The company is trending towards the midpoint of its annual comparable sales guidance, but expects to deliver profitability at the high end of its non-GAAP operating income rate guidance.
Q1 FY25 revenue was $8.85 billion, compared to $9.47 billion in Q1 FY24.
GAAP diluted EPS increased 2% to $1.13, while non-GAAP diluted EPS increased 4% to $1.20.
Domestic revenue decreased 6.8% year-over-year, primarily driven by a comparable sales decline of 6.3%.
The company expects sequential improvement in comparable sales performance for the rest of the year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Best Buy expects comparable sales to decline approximately 3% in Q2 FY25 and the non-GAAP operating income rate to be approximately 3.5%. For FY25, the company expects revenue of $41.3 billion to $42.6 billion and non-GAAP diluted EPS of $5.75 to $6.20.
Positive Outlook
- Expect sequential improvement in comparable sales performance.
- Membership and services offerings are expected to contribute to a higher gross profit rate.
- Company expects to deliver profitability at the high end of its non-GAAP operating income rate guidance.
- Focus on strengthening position in key categories like computing, home theater, and major appliances.
- Continued management of profitability through strong execution.
Challenges Ahead
- Comparable sales are expected to decline by approximately 3% in Q2 FY25.
- Macro factors continue to create a challenging sales environment.
- Sales were slightly softer than expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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