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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.
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 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