Best Buy Co Inc
Domestic revenue decreased 7.1% Y/Y, and International revenue fell 8.8% Y/Y. Enterprise comparable sales decreased 6.2% Y/Y.
Gross profit fell to $2.2 billion from $2.3 billion a year ago, with the margin expanding 110 basis points to 23.2%.
Operating margin remained flat Y/Y at 3.6%. Operating income for the quarter fell to $348 million from $371 million a year ago.
Adj. EPS of $1.22 beat the analyst consensus of $1.06.
"Our financial results were better than expected, and they reflect a consumer electronics industry that remains challenged due to the pull-forward of demand in prior years and the various macroeconomic factors that we are all too familiar with. With that said, we continue to expect that this year will be the low point in tech demand after two years of sales declines. Next year the consumer electronics industry should see stabilization and possibly growth driven by the natural upgrade and replacement cycles and the normalization of tech innovation," said Corie Barry, Best Buy CEO.
As of July 29, 2023, cash and cash equivalents stood at $1.09 billion. Operating cash flow was $181 million at the end of the period.
Dividend: The board of directors authorized a dividend of $0.92 per share, payable on October 10, 2023, to shareholders of record as of September 19, 2023.
Repurchase: In Q2 FY24, the company returned $79 million to shareholders through share repurchases.
Outlook: For FY24, the company revised guidance for revenue to $43.80 billion-$44.50 billion from $43.8 billion - $45.2 billion against the Street view of $44.3 billion. It now expects a comparable sales decline of 4.5% to 6.0% (vs. 3.0% to 6.0% earlier).
BBY tightened the adjusted EPS outlook to $6.00-$6.40 from $5.70 - $6.50 vs. the consensus of $6.08.
Price Action: BBY shares are trading higher by 0.43% at $74.39 premarket on the last check Tuesday.
