Best Buy(US:BBY)2025-05-29 11:00Financial Performance - Comparable sales decreased by 0.7% in Q1 FY26 compared to a decline of 6.1% in Q1 FY25[2] - Total revenue for Q1 FY26 was $8.767 billion, down from $8.847 billion in Q1 FY25, representing a decrease of 0.9%[2][4] - Adjusted diluted EPS for Q1 FY26 was $1.15, compared to $1.20 in Q1 FY25[2] - Net earnings for the three months ended May 3, 2025, were $202 million, down 17.9% from $246 million in the same period last year[27] - Domestic segment revenue was $8,127 million, a slight decrease of 0.9% compared to $8,203 million in the prior year[30] - Adjusted operating income remained stable at $333 million, with an adjusted operating income margin of 3.8%[34] Guidance and Expectations - The company expects FY26 adjusted diluted EPS to be in the range of $6.15 to $6.30[1] - For Q2 FY26, the company anticipates comparable sales to be slightly down and adjusted operating income rate to be approximately 3.6%[4] - The updated FY26 guidance includes revenue expectations of $41.1 billion to $41.9 billion, with comparable sales growth projected between -1.0% to 1.0%[10] Revenue Sources - Domestic online revenue increased by 2.1% to $2.58 billion, accounting for 31.7% of total domestic revenue[5] - Comparable sales in the domestic segment decreased by 0.7%, while comparable online sales increased by 2.1%[30] Costs and Charges - The company incurred $109 million in restructuring charges in Q1 FY26, primarily related to the Best Buy Health business[12] - The restructuring charges for the quarter were $109 million, significantly higher than $15 million in the same period last year[35] Tax and Assets - The effective tax rate for Q1 FY26 was 8.6%, significantly lower than 24.7% in Q1 FY25, influenced by restructuring charges[13] - The effective tax rate for the quarter was 8.6%, compared to 24.7% in the same quarter last year[34] - Total assets decreased to $14,128 million from $14,752 million year-over-year, a decline of 4.2%[25] Cash Flow and Stock Repurchase - The company reported a total cash provided by operating activities of $34 million, significantly down from $156 million in the previous year[27] - Cash, cash equivalents, and restricted cash at the end of the period were $1,435 million, down from $1,527 million year-over-year[27] - The company repurchased $100 million of common stock during the quarter, up from $50 million in the prior year[27] Profitability - The domestic gross profit rate improved to 23.5% from 23.4% in the previous year, driven by better performance in services[6]