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Feb 01, 2025
Best Buy Q4 2025 Earnings Report
Best Buy reported a slight revenue decline and a decrease in GAAP EPS due to a goodwill impairment charge.
Key Takeaways
Best Buy's Q4 FY25 revenue declined to $13.95 billion, down from $14.65 billion in the previous year, primarily due to the extra week in Q4 FY24. The company reported a GAAP diluted EPS of $0.54, impacted by a $475 million goodwill impairment charge. Adjusted diluted EPS was $2.58, reflecting strong sales growth in computing and services, offset by declines in appliances and home theater. Operating income fell to $217 million from $561 million last year.
Revenue declined to $13.95 billion due to the extra week in Q4 FY24.
GAAP diluted EPS fell to $0.54 due to a goodwill impairment charge.
Adjusted diluted EPS of $2.58 exceeded expectations.
Domestic comparable sales increased by 0.2% while international grew by 3.8%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Best Buy expects flat to 2% comparable sales growth for FY26, with growth weighted toward the second half of the year.
Positive Outlook
- Expected FY26 revenue between $41.4B and $42.2B.
- Adjusted diluted EPS guidance of $6.20 to $6.60.
- Growth expected in computing, services, and Best Buy Marketplace.
- Continued investment in omnichannel retail strategy.
- Ongoing focus on cost management and operational efficiency.
Challenges Ahead
- Persistent inflation may impact consumer spending on big-ticket items.
- Currency fluctuations may continue to affect international revenue.
- Higher operating expenses due to incentive compensation and advertising.
- Potential macroeconomic headwinds influencing discretionary spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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