Why Best Buy (BBY) Shares Are Gaining Today - Best Buy Co (NYSE:BBY)

Best Buy Co Inc BBY reported a second-quarter FY23 sales decline of 12.8% year-on-year to $10.33 billion, beating the consensus of $10.24 billion.
Domestic revenue declined 13.1% Y/Y, and International revenue fell 9.3%. Enterprise comparable sales decreased 12.1%.
Gross profit fell 18.6% Y/Y to $2.3 billion, with the margin contracting 160 basis points to 22.1%. Operating income as a percentage of revenue contracted 310 basis points to 3.6%. Operating income for the quarter fell 53.5% to $371 million.
Non-GAAP EPS of $1.54 beat the analyst consensus of $1.27.
Best Buy held $1.2 billion in cash and equivalents as of July 30, 2022. Cash used by operating activities for the six months totaled $(709) million.
"We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth. This includes actively assessing further actions to evolve our operating model, manage profitability and iterate on our growth initiatives," said CEO Corie Barry.
BBY's board of directors has authorized the payment of its regular quarterly cash dividend of $0.88 per common share, payable on October 11, 2022, to shareholders of record on September 20, 2022.
Outlook: Best Buy sees Q3 comparable sales decline slightly more than 12.1%.
For FY23, the company expects comparable sales to decline by around 11%.
Restructuring: BBY said it commenced an enterprise-wide restructuring initiative to better align its spending with critical strategies and operations.
BBY incurred $34 million of such restructuring costs in Q2, primarily related to termination benefits. It expects to incur additional charges for this initiative through the remainder of FY23.
Price Action: BBY shares are trading higher by 5.05% at $77.42 on the last check Tuesday.
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