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Best Buy
🇺🇸 NYSE:BBY
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Jul 31, 2021

Best Buy Q2 2022 Earnings Report

Best Buy reported better-than-expected results in the second quarter, with enterprise comparable sales increasing by 20%.

Key Takeaways

Best Buy's Q2 FY22 results exceeded expectations, with significant growth in comparable sales and operating income. The company raised its full-year enterprise comparable sales growth outlook to a range of 9% to 11% due to strong customer demand and effective execution by its teams.

Enterprise comparable sales increased by 19.6% compared to the previous year.

GAAP diluted EPS increased 76% to $2.90, and non-GAAP diluted EPS increased 74% to $2.98.

The company is raising its full-year enterprise comparable sales growth outlook to a range of 9% to 11%.

Customer demand for technology products and services remained strong, bolstered by consumer spending ability.

Total Revenue
$11.8B
Previous year: $9.91B
+19.6%
EPS
$2.98
Previous year: $1.71
+74.3%
Domestic Comp Sales
20.8%
Previous year: 5%
+316.0%
International Comp Sales
5%
Previous year: 15.1%
-66.9%
Gross Profit
$2.81B
Previous year: $2.27B
+23.8%
Cash and Equivalents
$4.34B
Previous year: $5.31B
-18.2%
Free Cash Flow
$597M
Previous year: $2.8B
-78.7%
Total Assets
$18.6B
Previous year: $17.4B
+6.7%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy is raising its outlook for the year based on the strength of the business and expectations for continued customer demand. For the second half of FY22, the company expects comparable sales to be in the range of flat to down 3% versus last year.

Positive Outlook

  • Enterprise revenue of $51.0 billion to $52.0 billion
  • Enterprise comparable sales growth of 9% to 11% compared to the prior outlook of 3% to 6% growth
  • Enterprise non-GAAP gross profit rate slightly higher than last year compared to the prior outlook of approximately flat to last year
  • Enterprise non-GAAP SG&A growth of approximately 9% compared to the prior outlook of 6% to 7% growth
  • Share repurchases of more than $2.5 billion compared to the prior outlook of approximately $2.5 billion

Challenges Ahead

  • Enterprise revenue of $11.4 billion to $11.6 billion for Q3 FY22
  • Enterprise comparable sales decline of -1% to -3% for Q3 FY22
  • Enterprise non-GAAP gross profit rate decline of approximately 30 basis points for Q3 FY22
  • Enterprise non-GAAP SG&A dollars approximately flat to last year for Q3 FY22
  • Non-GAAP effective income tax rate of approximately 25.0% for Q3 FY22

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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