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Best Buy
🇺🇸 NYSE:BBY
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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.

Total Revenue
$8.85B
Previous year: $9.47B
-6.5%
EPS
$1.2
Previous year: $1.15
+4.3%
Domestic Comp Sales
-6.3%
Previous year: -10.4%
-39.4%
International Comp Sales
-3.3%
Previous year: -5.5%
-40.0%
Gross Profit
$2.06B
Previous year: $2.15B
-4.3%
Cash and Equivalents
$1.21B
Previous year: $1.03B
+17.9%
Free Cash Flow
$4M
Previous year: -$535M
-100.7%
Total Assets
$14.8B
Previous year: $14.7B
+0.4%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy 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.
  • Company is trending towards the midpoint of its annual comparable sales guidance.
  • Impact of the extra week in Q4 FY24 added approximately $735 million in revenue, approximately 15 basis points of non-GAAP operating income rate and approximately $0.30 of non-GAAP diluted EPS to the full-year results; FY25 does not have this extra week.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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