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Feb 01, 2020

Best Buy Q4 2020 Earnings Report

Best Buy's Q4 2020 earnings exceeded expectations, demonstrating strength as a multi-channel retailer.

Key Takeaways

Best Buy reported better-than-expected Q4 results with a 3.2% increase in enterprise comparable sales. GAAP diluted EPS increased 6% to $2.84, and non-GAAP diluted EPS increased 7% to $2.90. The company announced FY21 non-GAAP diluted EPS guidance of $6.10 to $6.30 and increased the quarterly dividend by 10% to $0.55 per share.

Enterprise comparable sales increased by 3.2%.

GAAP diluted EPS increased by 6% to $2.84.

Non-GAAP diluted EPS increased by 7% to $2.90.

The quarterly dividend was increased by 10% to $0.55 per share.

Total Revenue
$15.2B
Previous year: $14.8B
+2.7%
EPS
$2.9
Previous year: $2.72
+6.6%
Domestic Comp Sales
3.4%
Previous year: 3%
+13.3%
International Comp Sales
1.6%
Previous year: 2.5%
-36.0%
Gross Profit
$3.24B
Previous year: $3.28B
-1.5%
Cash and Equivalents
$2.23B
Previous year: $1.98B
+12.6%
Free Cash Flow
$1.47B
Previous year: $1.1B
+33.6%
Total Assets
$15.6B
Previous year: $12.9B
+20.9%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

For FY21, Best Buy expects to deliver full-year comparable sales growth in the range of flat to 2% while continuing to invest in those areas necessary to make strategic progress and deliver enhanced employee and customer experiences, as well as continuing to drive cost savings and efficiencies.

Positive Outlook

  • Enterprise revenue of $43.3 billion to $44.3 billion
  • Enterprise comparable sales growth of flat to 2.0%
  • Enterprise non-GAAP operating income rate of approximately 4.8%
  • Non-GAAP effective income tax rate of approximately 23.0%
  • Non-GAAP diluted EPS of $6.10 to $6.30

Revenue & Expenses

Visualization of income flow from segment revenue to net income