Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BEST BUY CO INC | bby8-k3315q4earnings.htm |
| EX-99.1 - EXHIBIT 99.1 - BEST BUY CO INC | exhibit9913315.htm |
BEST BUY CO., INC. | ||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF GAAP EARNINGS | ||||||||||||||||||||||||||||||
Recast To Include Five Star in Discontinued Operations | ||||||||||||||||||||||||||||||
($ in millions, except per share amounts) | ||||||||||||||||||||||||||||||
(Unaudited and subject to reclassification) | ||||||||||||||||||||||||||||||
Fiscal Year 2014 | Fiscal Year 2015 | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||
5/4/2013 | 8/3/2013 | 11/2/2013 | 2/1/2014 | 2/1/2014 | 5/3/2014 | 8/2/2014 | 11/1/2014 | 1/31/2015 | 1/31/2015 | |||||||||||||||||||||
Revenue | $ | 8,928 | $ | 8,734 | $ | 8,924 | $ | 14,025 | $ | 40,611 | $ | 8,639 | $ | 8,459 | $ | 9,032 | $ | 14,209 | $ | 40,339 | ||||||||||
Cost of goods sold | 6,823 | 6,361 | 6,831 | 11,197 | 31,212 | 6,672 | 6,481 | 6,956 | 11,183 | 31,292 | ||||||||||||||||||||
Gross profit | 2,105 | 2,373 | 2,093 | 2,828 | 9,399 | 1,967 | 1,978 | 2,076 | 3,026 | 9,047 | ||||||||||||||||||||
Gross profit % | 23.6% | 27.2% | 23.5% | 20.2% | 23.1% | 22.8% | 23.4% | 23.0% | 21.3% | 22.4% | ||||||||||||||||||||
Selling, general and administrative expenses | 1,913 | 1,964 | 1,966 | 2,263 | 8,106 | 1,755 | 1,748 | 1,866 | 2,223 | 7,592 | ||||||||||||||||||||
SG&A % | 21.4% | 22.5% | 22.0% | 16.1% | 20.0% | 20.3% | 20.7% | 20.7% | 15.6% | 18.8% | ||||||||||||||||||||
Restructuring charges | 5 | 4 | 27 | 113 | 149 | 2 | 5 | 5 | (7 | ) | 5 | |||||||||||||||||||
Operating income | 187 | 405 | 100 | 452 | 1,144 | 210 | 225 | 205 | 810 | 1,450 | ||||||||||||||||||||
Operating income % | 2.1% | 4.6% | 1.1% | 3.2% | 2.8% | 2.4% | 2.7% | 2.3% | 5.7% | 3.6% | ||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||
Gain on sale of investments | — | 14 | 4 | 2 | 20 | — | 2 | 5 | 6 | 13 | ||||||||||||||||||||
Investment income and other | 3 | 3 | 6 | 7 | 19 | 4 | 6 | — | 4 | 14 | ||||||||||||||||||||
Interest expense | (27 | ) | (26 | ) | (24 | ) | (23 | ) | (100 | ) | (23 | ) | (23 | ) | (22 | ) | (22 | ) | (90 | ) | ||||||||||
Earnings from continuing operations before income tax | 163 | 396 | 86 | 438 | 1,083 | 191 | 210 | 188 | 798 | 1,387 | ||||||||||||||||||||
Income tax expense (benefit) | 51 | 163 | 36 | 138 | 388 | (278 | ) | 73 | 72 | 274 | 141 | |||||||||||||||||||
Effective tax rate | 31.2% | 41.2% | 41.4% | 31.5% | 35.8% | (145.9%) | 34.8% | 38.2% | 34.3% | 10.1% | ||||||||||||||||||||
Net earnings from continuing operations | 112 | 233 | 50 | 300 | 695 | 469 | 137 | 116 | 524 | 1,246 | ||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax | (185 | ) | 15 | 4 | (6 | ) | (172 | ) | (8 | ) | 10 | (9 | ) | (4 | ) | (11 | ) | |||||||||||||
Net earnings (loss) including noncontrolling interest | (73 | ) | 248 | 54 | 294 | 523 | 461 | 147 | 107 | 520 | 1,235 | |||||||||||||||||||
Net (earnings) loss from discontinued operations attributable to noncontrolling interests | (8 | ) | 18 | — | (1 | ) | 9 | — | (1 | ) | — | (1 | ) | (2 | ) | |||||||||||||||
Net earnings (loss) attributable to Best Buy Co., Inc. | $ | (81 | ) | $ | 266 | $ | 54 | $ | 293 | $ | 532 | $ | 461 | $ | 146 | $ | 107 | $ | 519 | $ | 1,233 | |||||||||
Amounts attributable to Best Buy Co., Inc. shareholders | ||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 112 | $ | 233 | $ | 50 | $ | 300 | $ | 695 | $ | 469 | $ | 137 | $ | 116 | $ | 524 | $ | 1,246 | ||||||||||
Net earnings (loss) from discontinued operations | (193 | ) | 33 | 4 | (7 | ) | (163 | ) | (8 | ) | 9 | (9 | ) | (5 | ) | (13 | ) | |||||||||||||
Net earnings attributable to Best Buy Co., Inc. shareholders | $ | (81 | ) | $ | 266 | $ | 54 | $ | 293 | $ | 532 | $ | 461 | $ | 146 | $ | 107 | $ | 519 | $ | 1,233 | |||||||||
Basic earnings (loss) per share attributable to Best Buy Co., Inc. | ||||||||||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.68 | $ | 0.15 | $ | 0.87 | $ | 2.03 | $ | 1.35 | $ | 0.39 | $ | 0.33 | $ | 1.49 | $ | 3.57 | ||||||||||
Discontinued operations | (0.57 | ) | 0.10 | 0.01 | (0.02 | ) | (0.47 | ) | (0.02 | ) | 0.03 | (0.03 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||
Basic earnings (loss) per share | $ | (0.24 | ) | $ | 0.78 | $ | 0.16 | $ | 0.85 | $ | 1.56 | $ | 1.33 | $ | 0.42 | $ | 0.30 | $ | 1.48 | $ | 3.53 | |||||||||
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. | ||||||||||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.67 | $ | 0.15 | $ | 0.85 | $ | 2.00 | $ | 1.33 | $ | 0.39 | $ | 0.33 | $ | 1.47 | $ | 3.53 | ||||||||||
Discontinued operations | (0.57 | ) | 0.10 | 0.01 | (0.02 | ) | (0.47 | ) | (0.02 | ) | 0.03 | (0.03 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||
Diluted earnings (loss) per share | $ | (0.24 | ) | $ | 0.77 | $ | 0.16 | $ | 0.83 | $ | 1.53 | $ | 1.31 | $ | 0.42 | $ | 0.30 | $ | 1.46 | $ | 3.49 | |||||||||
Dividends declared per Best Buy Co., Inc. common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.68 | $ | 0.17 | $ | 0.17 | $ | 0.19 | $ | 0.19 | $ | 0.72 | ||||||||||
Weighted average Best Buy Co., Inc. common shares outstanding (in millions) | ||||||||||||||||||||||||||||||
Basic | 339.0 | 340.4 | 342.8 | 346.3 | 342.1 | 347.4 | 349.3 | 350.1 | 351.2 | 349.5 | ||||||||||||||||||||
Diluted | 341.0 | 344.4 | 348.9 | 352.6 | 347.6 | 350.4 | 352.2 | 354.0 | 356.2 | 353.6 | ||||||||||||||||||||
BEST BUY CO., INC. | ||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||
Recast To Include Five Star in Discontinued Operations | ||||||||||||||||||||||||||||||
($ in millions, except per share amounts) | ||||||||||||||||||||||||||||||
(Unaudited and subject to reclassification) | ||||||||||||||||||||||||||||||
Fiscal Year 2014 | Fiscal Year 2015 | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||
5/4/2013 | 8/3/2013 | 11/2/2013 | 2/1/2014 | 2/1/2014 | 5/3/2014 | 8/2/2014 | 11/1/2014 | 1/31/2015 | 1/31/2015 | |||||||||||||||||||||
Domestic - Continuing Operations | ||||||||||||||||||||||||||||||
Gross profit | $ | 1,859 | $ | 2,125 | $ | 1,836 | $ | 2,454 | $ | 8,274 | $ | 1,763 | $ | 1,778 | $ | 1,841 | $ | 2,698 | $ | 8,080 | ||||||||||
LCD-related legal settlements2 | — | (264 | ) | — | — | (264 | ) | — | — | — | — | — | ||||||||||||||||||
Non-GAAP gross profit | $ | 1,859 | $ | 1,861 | $ | 1,836 | $ | 2,454 | $ | 8,010 | $ | 1,763 | $ | 1,778 | $ | 1,841 | $ | 2,698 | $ | 8,080 | ||||||||||
Non-GAAP gross profit % of revenue | 23.4% | 23.9% | 23.5% | 20.0% | 22.4% | 22.7% | 23.4% | 23.0% | 21.2% | 22.4% | ||||||||||||||||||||
SG&A | $ | 1,636 | $ | 1,704 | $ | 1,702 | $ | 1,964 | $ | 7,006 | $ | 1,535 | $ | 1,521 | $ | 1,632 | $ | 1,951 | $ | 6,639 | ||||||||||
LCD-related legal settlements2 | — | (35 | ) | — | — | (35 | ) | — | — | — | — | — | ||||||||||||||||||
Non-restructuring asset impairments - SG&A | (4 | ) | (13 | ) | (8 | ) | (59 | ) | (84 | ) | (8 | ) | (12 | ) | (6 | ) | (5 | ) | (31 | ) | ||||||||||
Non-GAAP SG&A | $ | 1,632 | $ | 1,656 | $ | 1,694 | $ | 1,905 | $ | 6,887 | $ | 1,527 | $ | 1,509 | $ | 1,626 | $ | 1,946 | $ | 6,608 | ||||||||||
Non-GAAP SG&A % of revenue | 20.5% | 21.3% | 21.7% | 15.5% | 19.2% | 19.6% | 19.9% | 20.3% | 15.3% | 18.3% | ||||||||||||||||||||
Operating income | $ | 222 | $ | 420 | $ | 110 | $ | 393 | $ | 1,145 | $ | 226 | $ | 258 | $ | 204 | $ | 749 | $ | 1,437 | ||||||||||
LCD-related legal settlements, net2 | — | (229 | ) | — | — | (229 | ) | — | — | — | — | — | ||||||||||||||||||
Non-restructuring asset impairments - SG&A | 4 | 13 | 8 | 59 | 84 | 8 | 12 | 6 | 5 | 31 | ||||||||||||||||||||
Restructuring charges | 1 | 1 | 24 | 97 | 123 | 2 | (1 | ) | 5 | (2 | ) | 4 | ||||||||||||||||||
Non-GAAP operating income | $ | 227 | $ | 205 | $ | 142 | $ | 549 | $ | 1,123 | $ | 236 | $ | 269 | $ | 215 | $ | 752 | $ | 1,472 | ||||||||||
Non-GAAP operating income % of revenue | 2.9% | 2.6% | 1.8% | 4.5% | 3.1% | 3.0% | 3.5% | 2.7% | 5.9% | 4.1% | ||||||||||||||||||||
International - Continuing Operations | ||||||||||||||||||||||||||||||
SG&A | $ | 277 | $ | 260 | $ | 264 | $ | 299 | $ | 1,100 | $ | 220 | $ | 227 | $ | 234 | $ | 272 | $ | 953 | ||||||||||
Non-restructuring asset impairments - SG&A | (8 | ) | (2 | ) | — | (5 | ) | (15 | ) | (1 | ) | — | — | (10 | ) | (11 | ) | |||||||||||||
Non-GAAP SG&A | $ | 269 | $ | 258 | $ | 264 | $ | 294 | $ | 1,085 | $ | 219 | $ | 227 | $ | 234 | $ | 262 | $ | 942 | ||||||||||
Non-GAAP SG&A % of revenue | 27.4% | 26.9% | 23.7% | 17.0% | 22.7% | 25.5% | 26.0% | 22.5% | 17.3% | 22.0% | ||||||||||||||||||||
Operating income (loss) | $ | (35 | ) | $ | (15 | ) | $ | (10 | ) | $ | 59 | $ | (1 | ) | $ | (16 | ) | $ | (33 | ) | $ | 1 | $ | 61 | $ | 13 | ||||
Non-restructuring asset impairments - SG&A | 8 | 2 | — | 5 | 15 | 1 | — | — | 10 | 11 | ||||||||||||||||||||
Restructuring charges | 4 | 3 | 3 | 16 | 26 | — | 6 | — | (5 | ) | 1 | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | (23 | ) | $ | (10 | ) | $ | (7 | ) | $ | 80 | $ | 40 | $ | (15 | ) | $ | (27 | ) | $ | 1 | $ | 66 | $ | 25 | |||||
Non-GAAP operating income (loss) % of revenue | (2.3%) | (1.1%) | (0.6%) | 4.6% | 0.8% | (1.7%) | (3.1%) | 0.1% | 4.4% | 0.6% | ||||||||||||||||||||
Consolidated - Continuing Operations | ||||||||||||||||||||||||||||||
Gross profit | $ | 2,105 | $ | 2,373 | $ | 2,093 | $ | 2,828 | $ | 9,399 | $ | 1,967 | $ | 1,978 | $ | 2,076 | $ | 3,026 | $ | 9,047 | ||||||||||
LCD-related legal settlements2 | — | (264 | ) | — | — | (264 | ) | — | — | — | — | — | ||||||||||||||||||
Non-GAAP gross profit | $ | 2,105 | $ | 2,109 | $ | 2,093 | $ | 2,828 | $ | 9,135 | $ | 1,967 | $ | 1,978 | $ | 2,076 | $ | 3,026 | $ | 9,047 | ||||||||||
Non-GAAP gross profit % of revenue | 23.6% | 24.1% | 23.5% | 20.2% | 22.5% | 22.8% | 23.4% | 23.0% | 21.3% | 22.4% | ||||||||||||||||||||
SG&A | $ | 1,913 | $ | 1,964 | $ | 1,966 | $ | 2,263 | $ | 8,106 | $ | 1,755 | $ | 1,748 | $ | 1,866 | $ | 2,223 | $ | 7,592 | ||||||||||
LCD-related legal settlements2 | — | (35 | ) | — | — | (35 | ) | — | — | — | — | — | ||||||||||||||||||
Non-restructuring asset impairments - SG&A | (12 | ) | (15 | ) | (8 | ) | (64 | ) | (99 | ) | (9 | ) | (12 | ) | (6 | ) | (15 | ) | (42 | ) | ||||||||||
Non-GAAP SG&A | $ | 1,901 | $ | 1,914 | $ | 1,958 | $ | 2,199 | $ | 7,972 | $ | 1,746 | $ | 1,736 | $ | 1,860 | $ | 2,208 | $ | 7,550 | ||||||||||
Non-GAAP SG&A % of revenue | 21.3% | 21.9% | 21.9% | 15.7% | 19.6% | 20.2% | 20.5% | 20.6% | 15.5% | 18.7% | ||||||||||||||||||||
Operating income | $ | 187 | $ | 405 | $ | 100 | $ | 452 | $ | 1,144 | $ | 210 | $ | 225 | $ | 205 | $ | 810 | $ | 1,450 | ||||||||||
LCD-related legal settlements, net2 | — | (229 | ) | — | — | (229 | ) | — | — | — | — | — | ||||||||||||||||||
Non-restructuring asset impairments - SG&A | 12 | 15 | 8 | 64 | 99 | 9 | 12 | 6 | 15 | 42 | ||||||||||||||||||||
Restructuring charges | 5 | 4 | 27 | 113 | 149 | 2 | 5 | 5 | (7 | ) | 5 | |||||||||||||||||||
Non-GAAP operating income | $ | 204 | $ | 195 | $ | 135 | $ | 629 | $ | 1,163 | $ | 221 | $ | 242 | $ | 216 | $ | 818 | $ | 1,497 | ||||||||||
Non-GAAP operating income % of revenue | 2.3% | 2.2% | 1.5% | 4.5% | 2.9% | 2.6% | 2.9% | 2.4% | 5.8% | 3.7% | ||||||||||||||||||||
Net earnings | $ | 112 | $ | 233 | $ | 50 | $ | 300 | $ | 695 | $ | 469 | $ | 137 | $ | 116 | $ | 524 | $ | 1,246 | ||||||||||
After-tax impact of LCD-related settlements, net2 | — | (147 | ) | (1 | ) | 6 | (142 | ) | — | — | — | — | — | |||||||||||||||||
After-tax impact of non-restructuring asset impairments - SG&A | 9 | 10 | 6 | 42 | 67 | 6 | 8 | 4 | 10 | 28 | ||||||||||||||||||||
After-tax impact of restructuring charges | 4 | 1 | 18 | 72 | 95 | 1 | 4 | 4 | (5 | ) | 4 | |||||||||||||||||||
After-tax impact of gain on investments, net | — | (9 | ) | (3 | ) | — | (12 | ) | — | (1 | ) | (3 | ) | (3 | ) | (7 | ) | |||||||||||||
Income tax impact of Best Buy Europe sale1 | — | 16 | (2 | ) | 4 | 18 | — | — | — | — | — | |||||||||||||||||||
Income tax impact of Europe legal entity reorganization3 | — | — | — | — | — | (353 | ) | — | — | — | (353 | ) | ||||||||||||||||||
Non-GAAP net earnings | $ | 125 | $ | 104 | $ | 68 | $ | 424 | $ | 721 | $ | 123 | $ | 148 | $ | 121 | $ | 526 | $ | 918 | ||||||||||
Diluted EPS | $ | 0.33 | $ | 0.67 | $ | 0.15 | $ | 0.85 | $ | 2.00 | $ | 1.33 | $ | 0.39 | $ | 0.33 | $ | 1.47 | $ | 3.53 | ||||||||||
Per share impact of LCD-related legal settlements2 | — | (0.43 | ) | — | 0.02 | (0.41 | ) | — | — | — | — | — | ||||||||||||||||||
Per share impact of non-restructuring asset impairments - SG&A | 0.02 | 0.03 | 0.02 | 0.12 | 0.19 | 0.02 | 0.02 | 0.01 | 0.03 | 0.08 | ||||||||||||||||||||
Per share impact of restructuring charges | 0.01 | 0.01 | 0.05 | 0.20 | 0.28 | 0.01 | 0.01 | 0.01 | (0.01 | ) | 0.01 | |||||||||||||||||||
Per share impact of gain on investments, net | — | (0.03 | ) | (0.01 | ) | — | (0.04 | ) | — | — | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||
Per share impact of income tax effect of Best Buy Europe sale1 | — | 0.05 | (0.01 | ) | 0.01 | 0.05 | — | — | — | — | — | |||||||||||||||||||
Per share impact of income tax effect of Europe legal entity reorganization3 | — | — | — | — | — | (1.01 | ) | — | — | — | (1.00 | ) | ||||||||||||||||||
Non-GAAP diluted EPS | $ | 0.36 | $ | 0.30 | $ | 0.20 | $ | 1.20 | $ | 2.07 | $ | 0.35 | $ | 0.42 | $ | 0.34 | $ | 1.48 | $ | 2.60 | ||||||||||
(1) Tax impact of Best Buy Europe sale and resulting required tax allocation between continuing and discontinued operations. (2) Second quarter fiscal 2014 amounts represent LCD settlements reached in the second quarter of fiscal 2014. Amounts for the twelve months ended Feb 1, 2014 exclude the impact of $44 million of pre-tax net proceeds from LCD settlements reached in the first quarter of fiscal 2014, as we did not include LCD settlements prior to the material settlements reached in the second quarter of fiscal 2014. Third and fourth quarter of fiscal 2014 amounts represent interim period tax reporting impact of LCD settlements reached in the second quarter of fiscal 2014. (3) Represents the acceleration of a non-cash tax benefit of $353 million as a result of reorganizing certain European legal entities to simplify our overall structure in the first quarter of fiscal 2015. | ||||||||||||||||||||||||||||||
BEST BUY CO., INC. | ||||||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||||
Recast To Include Five Star in Discontinued Operations | ||||||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||
(Unaudited and subject to reclassification) | ||||||||||||||||||||||||||||||
Fiscal Year 2014 | Fiscal Year 2015 | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||
5/4/2013 | 8/3/2013 | 11/2/2013 | 2/1/2014 | 2/1/2014 | 5/3/2014 | 8/2/2014 | 11/1/2014 | 1/31/2015 | 1/31/2015 | |||||||||||||||||||||
Enterprise Performance Summary | ||||||||||||||||||||||||||||||
Key Metrics: | ||||||||||||||||||||||||||||||
Comparable sales % change1 | (1.8%) | (0.6%) | 0.5% | (1.3%) | (1.0%) | (1.8%) | (2.2%) | 2.9% | 2.0% | 0.5% | ||||||||||||||||||||
Comparable sales % change, excluding installment billing2 | (1.8%) | (0.6%) | 0.5% | (1.3%) | (1.0%) | (1.8%) | (2.2%) | 2.2% | 1.3% | 0.0% | ||||||||||||||||||||
Domestic Segment Performance Summary | ||||||||||||||||||||||||||||||
Revenue | $ | 7,946 | $ | 7,775 | $ | 7,812 | $ | 12,298 | $ | 35,831 | $ | 7,781 | $ | 7,585 | $ | 7,992 | $ | 12,697 | $ | 36,055 | ||||||||||
Gross profit | $ | 1,859 | $ | 2,125 | $ | 1,836 | $ | 2,454 | $ | 8,274 | $ | 1,763 | $ | 1,778 | $ | 1,841 | $ | 2,698 | $ | 8,080 | ||||||||||
SG&A | $ | 1,636 | $ | 1,704 | $ | 1,702 | $ | 1,964 | $ | 7,006 | $ | 1,535 | $ | 1,521 | $ | 1,632 | $ | 1,951 | $ | 6,639 | ||||||||||
Operating income | $ | 222 | $ | 420 | $ | 110 | $ | 393 | $ | 1,145 | $ | 226 | $ | 258 | $ | 204 | $ | 749 | $ | 1,437 | ||||||||||
Key Metrics: | ||||||||||||||||||||||||||||||
Comparable sales % change1 | (1.2%) | (0.4%) | 1.8% | (1.2%) | (0.4%) | (1.3%) | (2.0%) | 3.2% | 2.8% | 1.0% | ||||||||||||||||||||
Comparable sales % change, excluding installment billing2 | (1.2%) | (0.4%) | 1.8% | (1.2%) | (0.4%) | (1.3%) | (2.0%) | 2.4% | 2.0% | 0.5% | ||||||||||||||||||||
Comparable online sales % change1 | 16.3% | 10.5% | 15.1% | 25.8% | 19.8% | 29.2% | 22.0% | 21.6% | 9.7% | 16.7% | ||||||||||||||||||||
Gross profit as % of revenue | 23.4% | 27.3% | 23.5% | 20.0% | 23.1% | 22.7% | 23.4% | 23.0% | 21.2% | 22.4% | ||||||||||||||||||||
SG&A as % of revenue | 20.6% | 21.9% | 21.8% | 16.0% | 19.6% | 19.7% | 20.1% | 20.4% | 15.4% | 18.4% | ||||||||||||||||||||
Operating income as % of revenue | 2.8% | 5.4% | 1.4% | 3.2% | 3.2% | 2.9% | 3.4% | 2.6% | 5.9% | 4.0% | ||||||||||||||||||||
Non-GAAP Results | ||||||||||||||||||||||||||||||
Gross profit | $ | 1,859 | $ | 1,861 | $ | 1,836 | $ | 2,454 | $ | 8,010 | $ | 1,763 | $ | 1,778 | $ | 1,841 | $ | 2,698 | $ | 8,080 | ||||||||||
Gross profit as % of revenue | 23.4% | 23.9% | 23.5% | 20.0% | 22.4% | 22.7% | 23.4% | 23.0% | 21.2% | 22.4% | ||||||||||||||||||||
SG&A | $ | 1,632 | $ | 1,656 | $ | 1,694 | $ | 1,905 | $ | 6,887 | $ | 1,527 | $ | 1,509 | $ | 1,626 | $ | 1,946 | $ | 6,608 | ||||||||||
SG&A as % of revenue | 20.5% | 21.3% | 21.7% | 15.5% | 19.2% | 19.6% | 19.9% | 20.3% | 15.3% | 18.3% | ||||||||||||||||||||
Operating income | $ | 227 | $ | 205 | $ | 142 | $ | 549 | $ | 1,123 | $ | 236 | $ | 269 | $ | 215 | $ | 752 | $ | 1,472 | ||||||||||
Operating income as % of revenue | 2.9% | 2.6% | 1.8% | 4.5% | 3.1% | 3.0% | 3.5% | 2.7% | 5.9% | 4.1% | ||||||||||||||||||||
International Segment Performance Summary | ||||||||||||||||||||||||||||||
Revenue | $ | 982 | $ | 959 | $ | 1,112 | $ | 1,727 | $ | 4,780 | $ | 858 | $ | 874 | $ | 1,040 | $ | 1,512 | $ | 4,284 | ||||||||||
Gross profit | $ | 246 | $ | 248 | $ | 257 | $ | 374 | $ | 1,125 | $ | 204 | $ | 200 | $ | 235 | $ | 328 | $ | 967 | ||||||||||
SG&A | $ | 277 | $ | 260 | $ | 264 | $ | 299 | $ | 1,100 | $ | 220 | $ | 227 | $ | 234 | $ | 272 | $ | 953 | ||||||||||
Operating income (loss) | $ | (35 | ) | $ | (15 | ) | $ | (10 | ) | $ | 59 | $ | (1 | ) | $ | (16 | ) | $ | (33 | ) | $ | 1 | $ | 61 | $ | 13 | ||||
Key Metrics: | ||||||||||||||||||||||||||||||
Comparable sales % change1 | (6.4%) | (7.1%) | (7.1%) | (2.0%) | (5.1%) | (6.6%) | (3.8%) | 0.2% | (4.0%) | (3.5%) | ||||||||||||||||||||
Gross profit as % of revenue | 25.1% | 25.8% | 23.1% | 21.7% | 23.5% | 23.8% | 22.9% | 22.6% | 21.7% | 22.6% | ||||||||||||||||||||
SG&A as % of revenue | 28.2% | 27.1% | 23.7% | 17.3% | 23.0% | 25.6% | 26.0% | 22.5% | 18.0% | 22.2% | ||||||||||||||||||||
Operating income (loss) as % of revenue | (3.5%) | (1.6%) | (0.9%) | 3.4% | (0.0%) | (1.9%) | (3.8%) | 0.1% | 403.4% | 30.3% | ||||||||||||||||||||
Non-GAAP Results | ||||||||||||||||||||||||||||||
SG&A | $ 269 | $ 258 | $ 264 | $ 294 | $ 1,085 | $ 219 | $ 227 | $ 234 | $ 262 | $ 942 | ||||||||||||||||||||
SG&A as % of revenue | 27.4% | 26.9% | 23.7% | 17.0% | 22.7% | 25.5% | 26.0% | 22.5% | 17.3% | 22.0% | ||||||||||||||||||||
Operating income (loss) | $ | (23 | ) | $ | (10 | ) | $ | (7 | ) | $ | 80 | $ | 40 | $ | (15 | ) | $ | (27 | ) | $ | 1 | $ | 66 | $ | 25 | |||||
Operating income (loss) as % of revenue | (2.3%) | (1.1%) | (0.6%) | 4.6% | 0.8% | (1.7%) | (3.1%) | 0.1% | 4.4% | 0.6% | ||||||||||||||||||||
(1) Best Buy’s comparable sales is comprised of revenue at stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels. The portion of the calculation of comparable store sales attributable to the International segment excludes the effect of fluctuations in foreign currency exchange rates. Comparable online sales are included in the comparable sales calculation. (2) In April of 2014, Best Buy began offering mobile carrier installment billing plans to its Domestic customers in addition to two-year contract plans. While the two types of contracts have broadly similar overall economics, installment billing plans typically generate higher revenues due to higher proceeds for devices and higher cost of sales due to lower device subsidies. As the mix of installment billing plans increases, there is an associated increase in revenue and cost of goods sold, and a decrease in gross profit rate, with gross profit dollars relatively unaffected. | ||||||||||||||||||||||||||||||
BEST BUY CO., INC. | ||||||||||
REVENUE CATEGORY SUMMARY | ||||||||||
Recast To Include Five Star in Discontinued Operations | ||||||||||
(Unaudited and subject to reclassification) | ||||||||||
Fiscal Year 2014 | Fiscal Year 2015 | |||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |
5/4/2013 | 8/3/2013 | 11/2/2013 | 2/1/2014 | 2/1/2014 | 5/3/2014 | 8/2/2014 | 11/1/2014 | 1/31/2015 | 1/31/2015 | |
DOMESTIC SEGMENT - EXCLUDING THE BENEFIT OF MOBILE PHONE INSTALLMENT BILLING1 | ||||||||||
Revenue Mix | ||||||||||
Consumer Electronics | 30% | 30% | 29% | 32% | 30% | 29% | 31% | 29% | 33% | 31% |
Computing and Mobile Phones | 48% | 49% | 49% | 46% | 48% | 49% | 47% | 49% | 45% | 47% |
Entertainment | 7% | 5% | 6% | 11% | 8% | 8% | 6% | 7% | 11% | 9% |
Appliances | 7% | 8% | 8% | 5% | 7% | 7% | 9% | 8% | 6% | 7% |
Services2 | 7% | 7% | 7% | 5% | 6% | 6% | 6% | 6% | 4% | 5% |
Other | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% |
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Comparable Sales | ||||||||||
Consumer Electronics | (8.1%) | (5.5%) | (2.5%) | (5.9%) | (5.6%) | (4.1%) | 0.2% | 3.1% | 10.7% | 3.7% |
Computing and Mobile Phones | 4.3% | 5.8% | 6.7% | 2.9% | 4.7% | 0.6% | (5.9%) | 1.6% | (2.1%) | (1.5%) |
Entertainment | (17.2%) | (29.8%) | (26.8%) | (5.6%) | (16.3%) | 1.5% | 16.1% | 16.6% | (1.8%) | 4.5% |
Appliances | 12.0% | 14.2% | 23.5% | 17.1% | 16.7% | 9.1% | 8.2% | 5.7% | 7.0% | 7.5% |
Services2 | 6.5% | 1.5% | 4.2% | (9.2%) | 0.2% | (13.5%) | (8.9%) | (10.3%) | (11.4%) | (11.1%) |
Other | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
Total | (1.2%) | (0.4%) | 1.8% | (1.2%) | (0.4%) | (1.3%) | (2.0%) | 2.4% | 2.0% | 0.5% |
DOMESTIC SEGMENT - INCLUDING THE BENEFIT OF MOBILE PHONE INSTALLMENT BILLING1 | ||||||||||
Revenue Mix | ||||||||||
Consumer Electronics | 30% | 30% | 29% | 32% | 30% | 29% | 31% | 29% | 33% | 31% |
Computing and Mobile Phones | 48% | 49% | 49% | 46% | 48% | 49% | 47% | 49% | 45% | 47% |
Entertainment | 7% | 5% | 6% | 11% | 8% | 8% | 6% | 7% | 11% | 9% |
Appliances | 7% | 8% | 8% | 5% | 7% | 7% | 9% | 8% | 6% | 7% |
Services2 | 7% | 7% | 7% | 5% | 6% | 6% | 6% | 6% | 4% | 5% |
Other | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% |
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Comparable Sales | ||||||||||
Consumer Electronics | (8.1%) | (5.5%) | (2.5%) | (5.9%) | (5.6%) | (4.1%) | 0.2% | 3.1% | 10.7% | 3.7% |
Computing and Mobile Phones | 4.3% | 5.8% | 6.7% | 2.9% | 4.7% | 0.6% | (5.9%) | 3.2% | (0.3%) | (0.6%) |
Entertainment | (17.2%) | (29.8%) | (26.8%) | (5.6%) | (16.3%) | 1.5% | 16.1% | 16.6% | (1.8%) | 4.5% |
Appliances | 12.0% | 14.2% | 23.5% | 17.1% | 16.7% | 9.1% | 8.2% | 5.7% | 7.0% | 7.5% |
Services2 | 6.5% | 1.5% | 4.2% | (9.2%) | 0.2% | (13.5%) | (8.9%) | (10.3%) | (11.4%) | (11.1%) |
Other | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
Total | (1.2%) | (0.4%) | 1.8% | (1.2%) | (0.4%) | (1.3%) | (2.0%) | 3.2% | 2.8% | 1.0% |
INTERNATIONAL SEGMENT | ||||||||||
Revenue Mix | ||||||||||
Consumer Electronics | 29% | 31% | 28% | 32% | 29% | 27% | 31% | 25% | 33% | 30% |
Computing and Mobile Phones | 50% | 49% | 53% | 46% | 50% | 51% | 49% | 54% | 45% | 49% |
Entertainment | 9% | 6% | 8% | 13% | 10% | 9% | 7% | 9% | 11% | 9% |
Appliances | 5% | 7% | 5% | 4% | 5% | 5% | 6% | 5% | 5% | 5% |
Services2 | 7% | 7% | 6% | 5% | 6% | 7% | 6% | 6% | 5% | 6% |
Other | <1% | <1% | <1% | <1% | <1% | 1% | 1% | 1% | 1% | 1% |
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Comparable Sales | ||||||||||
Consumer Electronics | (11.5%) | (11.6%) | (7.6%) | (8.8%) | (9.7%) | (11.5%) | (5.1%) | (7.2%) | (0.9%) | (5.1%) |
Computing and Mobile Phones | (2.7%) | (1.2%) | (5.9%) | 2.1% | (1.7%) | (3.4%) | (5.1%) | 2.0% | (4.6%) | (2.8%) |
Entertainment | (14.1%) | (27.7%) | (11.7%) | 0.6% | (9.3%) | (4.4%) | 12.2% | 5.0% | (14.3%) | (5.2%) |
Appliances | 1.8% | (0.2%) | (5.6%) | (1.5%) | (1.5%) | (9.6%) | (2.4%) | 6.6% | 1.9% | (0.5%) |
Services2 | (5.4%) | (9.1%) | (10.8%) | (0.7%) | (6.3%) | (12.7%) | (7.5%) | 3.6% | (3.4%) | (4.7%) |
Other | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
Total | (6.4%) | (7.1%) | (7.1%) | (2.0%) | (5.1%) | (6.6%) | (3.8%) | 0.2% | (4.0%) | (3.5%) |
(1) In April of 2014, Best Buy began offering mobile carrier installment billing plans to its Domestic customers in addition to two-year contract plans. While the two types of contracts have broadly similar overall economics, installment billing plans typically generate higher revenues due to higher proceeds for devices and higher cost of sales due to lower device subsidies. As the mix of installment billing plans increases, there is an associated increase in revenue and cost of goods sold, and a decrease in gross profit rate, with gross profit dollars relatively unaffected. | ||||||||||
(2) The "Services" revenue category consists primarily of service contracts, extended warranties, computer related services, product repair and delivery and installation for home theater, mobile audio and appliances. | ||||||||||