- Best Buy’s fourth quarter enterprise comparable sales increased by 0.5%, surpassing estimates of a 1.43% decline.
- International comparable sales rose by 3.8%, outperforming a projected decline of 1.95%.
- US comparable sales increased slightly by 0.2%, beating the expected decline of 1.34%.
- US entertainment sales fell by 10.9%, which was worse than the estimated decline of 7.47%.
- Sales in the US appliances sector decreased by 11.4%, but performed better than last year’s decrease of 13.7%.
- US computing and mobile phone sales grew by 6.5%, exceeding the 4.13% growth estimate.
- US consumer electronics sales saw a decline of 2.2%, performing better than the estimated fall of 4.38%.
- Online sales in the US grew by 2.6%, topping the expected decline of 1.21%.
- Overall revenue was $13.95 billion, down 4.8% year-over-year, but higher than the forecasted $13.69 billion.
- US revenue came in at $12.72 billion, down 5.2% year-over-year, beating the $12.55 billion estimate.
- International revenue was $1.23 billion, a slight 0.2% decrease year-over-year, exceeding the $1.14 billion estimate.
- Gross margin improved to 20.9%, higher than both the previous year’s 20.5% and the estimated 20.7%.
- CFO Matt Bilunas stated expectations for Q1 FY26 comparable sales to be slightly down.
- Consumer behavior is expected to remain resilient but cautious due to high inflation, influencing big-ticket purchases.
- Best Buy anticipates flat to 2% growth in comparable sales for FY26, with more growth anticipated in the second half of the year.
- The company has a diverse analyst rating: 11 buys, 16 holds, and 3 sells.
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Best Buy Co Inc on Smartkarma
Analyst coverage of Best Buy Co Inc on Smartkarma reveals insights from Baptista Research analysts focusing on the company’s performance and strategic initiatives. In a report titled “Best Buy Co. Inc.: Its Efforts Towards Market Expansion & Store Format Innovation & Other Major Drivers,” analysts discussed Best Buy’s third quarter fiscal 2025 earnings results. The report highlighted a mix of strengths and challenges, noting that while operating income met expectations, softer sales were attributed to reduced customer demand and macroeconomic uncertainties. Despite reporting $9.4 billion in revenue with a 3.7% operating income rate, comparable sales declined by 2.5%.
In another report by Baptista Research titled “Best Buy Co.: How Is The Management Adapting to Changing Consumer Behaviors? – Major Drivers,” analysts focused on the company’s second quarter fiscal 2025 earnings. The report highlighted a better-than-expected performance for Q2, with a 2.3% decline in comparable sales, surpassing the guided 3% decline, and a non-GAAP operating income rate of 4.1%, exceeding the projected 3.5%. Analysts attributed this performance to lower SG&A expenses and a year-over-year expansion in non-GAAP operating income rate, driven by gross profit rate expansion from membership and service offerings.
A look at Best Buy Co Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Best Buy Co Inc, a retail giant in consumer electronics and home products, appears to have a promising long-term outlook based on the Smartkarma Smart Scores. With solid scores in Dividend at 4 and Momentum at 4, the company is displaying strong potential for growth and stability. Additionally, a respectable score of 3 in Growth suggests future expansion possibilities. However, lower scores in Value at 2 and Resilience at 2 indicate areas that may need attention to enhance the company’s overall performance.
In summary, Best Buy Co Inc is a leading retail player in consumer electronics, home office products, and entertainment software. While showing strength in dividends and momentum, there is room for improvement in value and resilience. Investors may view the company’s growth potential and stable dividend payments as positive signs for its long-term prospects in the retail sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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