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Nov 02, 2024

Best Buy Q3 2025 Earnings Report

Best Buy's Q3 results reflected a slight decrease in revenue and mixed EPS performance, with GAAP EPS increasing and non-GAAP EPS decreasing.

Key Takeaways

Best Buy reported Q3 FY25 results with revenue of $9.445 billion, a decrease from $9.756 billion in Q3 FY24. GAAP diluted EPS increased to $1.26 from $1.21, while non-GAAP diluted EPS decreased to $1.26 from $1.29. The company is adjusting its full year comparable sales guidance to a decline in the range of 2.5% to 3.5%.

Enterprise revenue decreased to $9.445 billion from $9.756 billion year-over-year.

GAAP diluted EPS increased to $1.26 from $1.21 year-over-year.

Non-GAAP diluted EPS decreased to $1.26 from $1.29 year-over-year.

Comparable sales declined 2.9% overall, with domestic and international segments experiencing declines.

Total Revenue
$9.45B
Previous year: $9.76B
-3.2%
EPS
$1.26
Previous year: $1.29
-2.3%
Domestic Comp Sales
-2.8%
Previous year: -7.3%
-61.6%
International Comp Sales
-3.7%
Previous year: -1.9%
+94.7%
Gross Profit
$2.22B
Previous year: $2.23B
-0.7%
Cash and Equivalents
$643M
Previous year: $636M
+1.1%
Free Cash Flow
-$449M
Previous year: -$108M
+315.7%
Total Assets
$17B
Previous year: $16.9B
+0.8%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy expects Q4 FY25 comparable sales to be flat to down 3% and a non-GAAP operating income rate in the range of 4.6% to 4.8%.

Positive Outlook

  • Compelling deals planned for the holiday season
  • Inspirational in-store and digital merchandising
  • Competitive fulfillment options
  • Customer demand has increased in the first few weeks of Q4
  • Maintaining full year non-GAAP operating income rate of 4.1% to 4.2%

Challenges Ahead

  • Ongoing macro uncertainty
  • Customers waiting for deals and sales events
  • Distraction during the run-up to the election
  • Softer-than-expected demand in non-essential categories during the second half of Q3
  • Adjusting full year comparable sales guidance to a decline in the range of 2.5% to 3.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income