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Jan 28, 2023
Best Buy Q4 2023 Earnings Report
Best Buy's Q4 2023 performance saw revenue in line with expectations and profitability exceeding them.
Key Takeaways
Best Buy reported Q4 FY23 results, with revenue of $14.735 billion and a GAAP diluted EPS of $2.23. The company's performance was better than expected in terms of profitability, and they remained committed to balancing near-term responses to current conditions while advancing strategic initiatives.
Q4 sales were in line with expectations, and profitability was better than expected.
The company remained committed to balancing near-term responses to current conditions and managing well what is in their control.
Best Buy advanced strategic initiatives and invested in areas important for long-term performance.
The macro and industry backdrop is expected to continue to be pressured in FY24, and adjustments will continue.
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 continued pressures from the macro environment in FY24, expecting a comparable sales decline of 3% to 6%. They plan to expand their gross profit rate and manage costs while evolving their membership program.
Positive Outlook
- Gross profit rate is expected to expand approximately 40 to 70 basis points.
- Cost optimization efforts are expected to yield benefits.
- The company will evolve its membership program.
- Revenue of $43.8 billion to $45.2 billion
- Non-GAAP diluted EPS of $5.70 to $6.50
Challenges Ahead
- Consumer electronics industry continues to feel the effects of the broader macro environment.
- Comparable sales are expected to decline 3% to 6% for the year.
- Most sales pressure is expected in the first quarter.
- Non-GAAP SG&A expense is expected to increase versus last year.
- Cost takeout initiatives and lower variable costs are offset by the addback of incentive compensation, the extra week and higher depreciation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income