Best Buy Q1: EPS Beat, Comps Decline 10.1%, Unchanged FY24 Guidance & More

  • Best Buy Co Inc BBY reported first-quarter FY24 sales decline of 11.1% year-on-year to $9.47 billion, missing the analyst consensus estimate of $9.52 billion.
  • Domestic revenue decreased 11% Y/Y, and International revenue fell 11.6%. Enterprise comparable sales decreased 10.1%.
  • Gross profit fell 8.6% Y/Y to $2.2 billion, with the margin expanding 60 basis points to 22.7%. Operating income as a percentage of revenue contracted 100 basis points to 3.3%. Operating income for the quarter fell 32.7% to $311 million.
  • Non-GAAP EPS of $1.15 beat the analyst consensus of $1.11.
  • Best Buy held $1.4 billion in cash and equivalents as of April 29, 2023. Operating cash flow was negative $(331) million for the quarter.
  • In Q1 FY24, the company returned a total of $281 million to shareholders through dividends of $202 million and share repurchases of $79 million.
  • BBY's board of directors has authorized the payment of its regular quarterly cash dividend of $0.92 per common share, payable on July 6, 2023, to shareholders of record on June 15, 2023.
  • "We continue to appropriately balance the need to adjust in response to the current industry sales trends with the need to invest so we can capitalize on opportunities as our industry moves through this downturn and returns to growth," said Corie Barry, Best Buy CEO.
  • Outlook, Unchanged: For FY24, the company expects revenue of $43.8 billion - $45.2 billion against the Street view of $44.53 billion.
  • BBY sees Adjusted EPS of $5.70 - $6.50 versus the consensus of $6.17.
  • It expects comparable sales decline of 3.0% to 6.0%
  • Price Action: BBY shares are trading higher by 1.1% at $69.91 on the last check Thursday.
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