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Oct 30, 2021

Best Buy Q3 2022 Earnings Report

Best Buy's Q3 2022 earnings exceeded expectations, with domestic comparable sales increasing and full-year enterprise comparable sales growth outlook raised.

Key Takeaways

Best Buy reported record Q3 results, with a 2% increase in Domestic comparable sales on top of a 22.6% increase the previous year. The company's omnichannel capabilities and ability to support customers' technology needs drove the positive results. The company is raising full year sales outlook.

Delivered record Q3 results with 2% Domestic comparable sales growth on top of 22.6% last year.

Omnichannel capabilities and technology support uniquely positioned Best Buy to seize opportunities.

Digital sales more than doubled pre-pandemic levels, with growth in phone, chat, and in-home sales.

Reached fastest small-package online shipping times ever, with same-day delivery up 400%.

Total Revenue
$11.9B
Previous year: $11.9B
+0.5%
EPS
$2.08
Previous year: $2.06
+1.0%
Domestic Comp Sales
2%
Previous year: 22.6%
-91.2%
International Comp Sales
-3%
Previous year: 27.3%
-111.0%
Gross Profit
$2.8B
Previous year: $2.8B
+0.3%
Cash and Equivalents
$3.47B
Previous year: $5.14B
-32.5%
Free Cash Flow
-$28M
Previous year: -$75M
-62.7%
Total Assets
$20.1B
Previous year: $21.2B
-5.2%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy anticipates Q4 FY22 revenue between $16.4 billion and $16.9 billion, with comparable sales growth ranging from -2.0% to +1.0%.

Positive Outlook

  • Revenue of $16.4 billion to $16.9 billion
  • Comparable sales growth of -2.0% to +1.0%
  • Continued investments in new membership program
  • Continued investments in technology
  • Continued investments in advertising

Challenges Ahead

  • Non-GAAP gross profit rate decline of approximately 30 basis points to last year
  • Non-GAAP SG&A dollar growth of approximately 8% to last year
  • Non-GAAP effective income tax rate of approximately 24.0%
  • Uncertainty in predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized.
  • These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill impairments; gains and losses on investments; intangible asset amortization; certain acquisition-related costs; and the tax effect of all such items.

Revenue & Expenses

Visualization of income flow from segment revenue to net income