Best Buy(US:BBY)2024-02-28 16:00Financial Performance - Comparable sales declined by 4.8% in Q4 FY24, with domestic comparable sales down 5.1% and international comparable sales down 1.4%[2] - Total revenue for Q4 FY24 was $14.646 billion, a decrease from $14.735 billion in Q4 FY23, with domestic revenue at $13.410 billion and international revenue at $1.236 billion[2] - Revenue for the three months ended February 3, 2024, was $14,646 million, a decrease of 0.6% compared to $14,735 million for the same period in 2023[25] - Net earnings for the twelve months ended February 3, 2024, were $1,241 million, down from $1,419 million in the previous year[25] - Operating income for the twelve months ended February 3, 2024, was $1,574 million, down from $1,795 million in the previous year[25] - Consolidated operating income for Q4 2024 was $561 million, representing 3.8% of revenue, compared to $597 million and 4.1% in Q4 2023[35] Earnings Per Share - GAAP diluted EPS for Q4 FY24 was $2.12, while non-GAAP diluted EPS was $2.72, compared to $2.23 and $2.61 in Q4 FY23 respectively[2] - Non-GAAP diluted EPS for Q4 2024 was $2.72, an increase from $2.61 in Q4 2023[35] - The company expects FY25 non-GAAP diluted EPS to be in the range of $5.75 to $6.20, with a projected revenue of $41.3 billion to $42.6 billion[4][5] Profitability Metrics - Domestic gross profit rate improved to 20.4% in Q4 FY24 from 19.8% in Q4 FY23, driven by better performance from membership offerings[8] - Gross profit margin improved to 20.5% for the three months ended February 3, 2024, compared to 20.0% for the same period in 2023[25] - Non-GAAP operating income for the twelve months ended February 3, 2024, was $1,788 million, representing 4.1% of revenue[36] - Return on Assets (ROA) for the twelve months ended February 3, 2024, was 7.8%, down from 8.6% in the prior year[40] - Non-GAAP Return on Investment (ROI) for the twelve months ended February 3, 2024, was 23.9%, compared to 25.0% in the previous year[40] Expenses and Charges - The company incurred $169 million in restructuring charges in Q4 FY24, primarily related to employee termination benefits[13] - The company reported a restructuring charge of $169 million in Q4 2024, compared to $86 million in Q4 2023[35] - Total SG&A expenses for the twelve months ended February 3, 2024, were $7,876 million, with a percentage of revenue at 18.1%[36] Cash Flow and Assets - Cash provided by operating activities for the twelve months ended February 3, 2024, was $1,470 million, compared to $1,824 million for the same period in 2023[29] - Total current assets decreased to $7,897 million as of February 3, 2024, from $8,802 million as of January 28, 2023[27] - Total liabilities decreased to $11,914 million as of February 3, 2024, from $12,908 million as of January 28, 2023[27] - The company repurchased $340 million of common stock during the twelve months ended February 3, 2024, compared to $1,014 million in the previous year[29] Future Outlook - For Q1 FY25, comparable sales are expected to decline by approximately 5%, with a non-GAAP operating income rate of about 3.4%[5] - The company plans to expand its gross profit rate by approximately 20 to 30 basis points in FY25, despite expected pressures from credit card profit sharing[5] Segment Performance - Domestic segment revenue for computing and mobile phones increased to 42% in Q4 2024, compared to 41% in Q4 2023, with comparable sales down by 4.2%[33] - International segment revenue for entertainment rose to 11% in Q4 2024, up from 9% in Q4 2023, with comparable sales increasing by 16.1%[33] Taxation - The effective tax rate increased to 21.2% for the three months ended February 3, 2024, from 19.3% in the same period of 2023[25] - The effective tax rate for the twelve months ended February 3, 2024, was 23.5%[36]