- Best Buy’s enterprise comparable sales fell by 6.1% in Q1, missing the estimated decline of 4.99%.
- International comparable sales dropped by 3.3%, slightly below the estimate of 3%.
- US comparable sales decreased by 6.3%, underperforming the estimated 5.02% drop.
- US entertainment comparable sales plummeted by 11.3%, missing the +3.8% in the previous year and the estimate of -2%.
- US appliances comparable sales fell sharply by 18.5%, significantly missing the estimated 9.92% decline.
- US computing and mobile phone comparable sales declined by 2.2%, outperforming the estimated 4.17% drop and a significant improvement from last year’s 13.3% decline.
- US consumer electronics comparable sales fell by 8.3%, which was better than last year’s 9.8% but missed the estimated decline of 6%.
- US online comparable sales fell by 6.1%, better than last year’s 12.1% decline.
- Adjusted EPS stood at $1.20, exceeding the estimated $1.08 and last year’s $1.15.
- Revenue was $8.85 billion, missing the $8.97 billion estimate and down 6.5% year-over-year.
- US revenue was $8.20 billion, below the $8.35 billion estimate and down 6.8% year-over-year.
- International revenue was $644 million, slightly below the $647.6 million estimate and down 3.3% year-over-year.
- Gross margin improved to 23.3%, exceeding the estimated 23% and last year’s 22.7%.
- For Q2 FY25, Best Buy anticipates a comparable sales decline of approximately 3% and a non-GAAP operating income rate of around 3.5%.
- Best Buy noted progress on FY25 priorities, growth in paid memberships, and improvements in customer experiences.
- The midpoint of comparable sales guidance still expects profitability at the high end of the non-GAAP operating income rate due to higher gross profit rates in membership and services offerings.
- Analyst ratings: 9 buys, 15 holds, 4 sells.
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Best Buy Co Inc on Smartkarma
Analyst coverage of Best Buy Co Inc on the independent investment research network Smartkarma has provided insights into the company’s recent performance. Baptista Research, a prominent analyst on Smartkarma, published two research reports on Best Buy Co Inc. The first report, titled “Best Buy Co.: Online Sales Growth & 5 Factors Driving Its Performance! – Financial Forecasts,” highlighted the mixed sentiments in Best Buy’s fourth-quarter fiscal 2024 results. CEO Corie Barry praised the company’s ability to navigate a challenging Consumer Electronics sales environment, achieving annual profitability at the high end of their original guidance despite falling revenues.
In another report titled “Best Buy Co. Inc.: The Strategy Driving Their Membership Program Success! – Major Drivers,” Baptista Research discussed Best Buy Co Inc‘s performance in the previous quarter. While revenues fell below analyst expectations, the company managed to beat earnings estimates. The report noted a 6.9% decline in comparable sales due to softened consumer demand but highlighted growth in the paid membership base and improved customer satisfaction across various service offerings. These insights offer investors valuable information for understanding Best Buy Co Inc‘s current position and future prospects.
A look at Best Buy Co Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 has been rated across key factors by Smartkarma Smart Scores, providing insights into its long-term outlook. While the company shows strength in areas such as Dividend and Growth, with scores of 4 and 3 respectively, it lags behind in Value and Resilience, scoring 2 in each. Momentum stands at 3, indicating a moderate performance. With a varied performance across different factors, Best Buy Co Inc appears to have a mixed outlook for the future.
Best Buy Co Inc, a renowned retailer of consumer electronics, home office products, and entertainment software, faces a diverse landscape of opportunities and challenges. Despite scoring well in Dividend and showing potential for Growth, factors like Value and Resilience may present obstacles to sustained success. As the company continues to navigate the competitive retail market, maintaining its Momentum will be crucial for long-term viability and growth.
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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