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Jul 30, 2022

Best Buy Q2 2023 Earnings Report

Best Buy's Q2 2023 results were announced, with comparable sales declining and EPS decreasing compared to the previous year.

Key Takeaways

Best Buy reported a decrease in revenue and earnings per share for the second quarter of fiscal year 2023. Comparable sales declined by 12.1% compared to a strong growth of 19.6% in the same quarter last year. The company is focused on managing profitability and evolving its operating model in response to the challenging sales environment.

Comparable sales decreased 12.1% versus 19.6% growth in Q2 FY22.

GAAP diluted EPS was $1.35, down from $2.90 in the prior year.

Non-GAAP diluted EPS was $1.54, compared to $2.98 in the prior year.

The company commenced an enterprise-wide restructuring initiative to optimize its cost structure.

Total Revenue
$10.3B
Previous year: $11.8B
-12.8%
EPS
$1.54
Previous year: $2.98
-48.3%
Domestic Comp Sales
-12.7%
Previous year: 20.8%
-161.1%
International Comp Sales
-4.2%
Previous year: 5%
-184.0%
Gross Profit
$2.29B
Previous year: $2.81B
-18.6%
Cash and Equivalents
$840M
Previous year: $4.34B
-80.6%
Free Cash Flow
$449M
Previous year: $597M
-24.8%
Total Assets
$15.4B
Previous year: $18.6B
-17.0%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy anticipates a comparable sales decline in a range around 11% and a non-GAAP operating income rate of approximately 4% for fiscal year 2023. For Q3 FY23, the company expects comparable sales to decline slightly more than the 12.1% decline reported for Q2 FY23, and the year-over-year decline in the non-GAAP operating income rate to be very similar to, or slightly more than, the Q2 FY23 results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income