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Jan 30, 2021

Best Buy Q4 2021 Earnings Report

Best Buy's Q4 2021 earnings exceeded expectations, driven by strong online sales and comparable sales growth.

Key Takeaways

Best Buy reported strong Q4 FY21 results, with a 12.6% increase in enterprise comparable sales and a nearly 90% growth in domestic online sales. The company's GAAP diluted EPS increased by 9% to $3.10, and non-GAAP diluted EPS rose by 20% to $3.48. Best Buy is also increasing its quarterly dividend by 27% to $0.70 per share.

Enterprise comparable sales increased by 12.6%.

Domestic comparable online sales grew by 89.3%.

GAAP diluted EPS increased by 9% to $3.10.

The quarterly dividend was increased by 27% to $0.70 per share.

Total Revenue
$16.9B
Previous year: $15.2B
+11.5%
EPS
$3.48
Previous year: $2.9
+20.0%
Domestic Comp Sales
12.4%
Previous year: 3.4%
+264.7%
International Comp Sales
14.9%
Previous year: 1.6%
+831.3%
Gross Profit
$3.54B
Previous year: $3.24B
+9.5%
Cash and Equivalents
$5.49B
Previous year: $2.23B
+146.5%
Free Cash Flow
$841M
Previous year: $1.47B
-42.8%
Total Assets
$19.1B
Previous year: $15.6B
+22.3%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy expects demand for technology to remain elevated in FY22, but acknowledges uncertainty due to the COVID-19 pandemic.

Positive Outlook

  • Confident in long-term strategic direction.
  • Investing from a position of strength.
  • Technology demand remains elevated.
  • Share repurchases of at least $2.0 billion.
  • Capital expenditures of $750 million to $850 million.

Challenges Ahead

  • High level of uncertainty related to COVID-19 impacts.
  • Difficult to predict sustainability of current trends.
  • Uncertainty related to vaccine timing and impact on customer behavior.
  • Potential impact from government stimulus actions.
  • Comparable sales growth of (-2%) to +1% assumes customers resume spending in other areas.

Revenue & Expenses

Visualization of income flow from segment revenue to net income