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Jan 29, 2022
Best Buy Q4 2022 Earnings Report
Best Buy's Q4 earnings were impacted by constrained inventory and strategic investments.
Key Takeaways
Best Buy reported Q4 revenue of $16.37 billion, a decrease of 3.4% year-over-year, and GAAP diluted EPS of $2.62. The company's performance was affected by constrained inventory and investments in future growth. While Q4 sales were impacted, FY22 was a record year for revenue and earnings.
Q4 comparable sales decreased 2.3% compared to 12.6% growth in Q4 FY21.
Q4 GAAP diluted EPS was $2.62.
Q4 Non-GAAP diluted EPS was $2.73.
The quarterly dividend was increased by 26% to $0.88 per share.
Best Buy
Best Buy
Best Buy Revenue by Segment
Best Buy Revenue by Geographic Location
Revenue by Segment
Domestic segment Revenue
CapyFin.comInternational segment Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Best Buy anticipates sales growth and earnings to vary in FY23 due to short-term industry decline and investments in their new membership program. However, they expect strong revenue growth and operating income rate expansion beyond FY22 by FY25.
Positive Outlook
- Leveraging position of strength to invest in future growth.
- Expects consumer electronics industry to return to higher levels than pre-pandemic.
- Totaltech, Best Buy Health, and other initiatives will drive meaningful growth.
- Share repurchases of approximately $1.5 billion
- Increased Quarterly Dividend 26% to $0.88 per Share
Challenges Ahead
- Short-term industry decline as company laps high growth and government stimulus.
- Investment in new membership program, Best Buy Totaltech, impacting short-term financials.
- Comparable sales decline of 1.0% to 4.0%
- Revenue of $49.3 billion to $50.8 billion
- Enterprise non-GAAP operating income rate of approximately 5.4%
Revenue & Expenses
Visualization of income flow from segment revenue to net income