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Aug 03, 2024

Best Buy Q2 2025 Earnings Report

Best Buy's Q2 2025 results were announced, featuring better-than-expected sales and profitability, with comparable sales declining by 2.3% and GAAP diluted EPS increasing by 7% to $1.34.

Key Takeaways

Best Buy reported better-than-expected sales and profitability for Q2 FY25. The company's domestic tablet and computing categories showed strong growth. They are raising their full year non-GAAP diluted EPS guidance.

Enterprise comparable sales declined 2.3%.

GAAP diluted EPS increased 7% to $1.34.

Non-GAAP diluted EPS increased 10% to $1.34.

FY25 non-GAAP diluted EPS guidance range raised to $6.10 to $6.35.

Total Revenue
$9.29B
Previous year: $9.58B
-3.1%
EPS
$1.34
Previous year: $1.22
+9.8%
Domestic Comp Sales
-2.3%
Previous year: -6.3%
-63.5%
International Comp Sales
-1.8%
Previous year: -5.4%
-66.7%
Gross Profit
$2.19B
Previous year: $2.22B
-1.5%
Cash and Equivalents
$1.39B
Previous year: $1.09B
+26.9%
Free Cash Flow
$478M
Previous year: $321M
+48.9%
Total Assets
$15.6B
Previous year: $15.3B
+2.0%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy expects industry stabilization in the back half of the year and updated its annual comparable sales guidance range to a decline of 1.5% to 3.0%. For Q3 FY25, they expect comparable sales to decline by approximately 1.0% and non-GAAP operating income rate to be approximately 3.7%.

Positive Outlook

  • Revenue of $41.3 billion to $41.9 billion
  • Comparable sales of (3.0%) to (1.5%)
  • Enterprise non-GAAP operating income rate of 4.1% to 4.2%
  • Non-GAAP effective income tax rate of approximately 24.0%
  • Non-GAAP diluted EPS of $6.10 to $6.35

Revenue & Expenses

Visualization of income flow from segment revenue to net income