PART I — FINANCIAL INFORMATION This section presents Best Buy's condensed consolidated financial statements and detailed notes, highlighting decreased net earnings and diluted EPS due to restructuring charges, and a slight year-over-year decrease in total assets and equity [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides Best Buy's condensed consolidated financial statements, including balance sheets, income, comprehensive income, cash flows, and equity changes, with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets, detailing assets, liabilities, and equity at specific fiscal dates **Condensed Consolidated Balance Sheet Highlights ($ in millions):** | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :--------------- | :------------- | | Total Assets | $15,253 | $14,782 | $15,624 | | Total Liabilities | $12,537 | $11,972 | $12,517 | | Total Equity | $2,716 | $2,808 | $3,107 | | Merchandise Inventories | $5,816 | $5,085 | $5,706 | | Goodwill | $908 | $908 | $1,383 | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This section outlines the company's condensed consolidated statements of earnings, showing revenue, gross profit, operating income, and net earnings for specified periods **Condensed Consolidated Statements of Earnings Highlights ($ in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Revenue | $9,438 | $9,288 | $18,205 | $18,135 | | Gross profit | $2,194 | $2,186 | $4,243 | $4,250 | | Operating income | $251 | $383 | $470 | $695 | | Net earnings | $186 | $291 | $388 | $537 | | Basic earnings per share | $0.88 | $1.35 | $1.83 | $2.49 | | Diluted earnings per share | $0.87 | $1.34 | $1.82 | $2.47 | | Restructuring charges | $114 | $(7) | $223 | $8 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the condensed consolidated statements of comprehensive income, detailing net earnings and other comprehensive income components **Condensed Consolidated Statements of Comprehensive Income Highlights ($ in millions):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net earnings | $186 | $291 | $388 | $537 | | Foreign currency translation adjustments, net of tax | $- | $(2) | $13 | $(7) | | Comprehensive income | $186 | $289 | $401 | $530 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section provides the condensed consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities **Condensed Consolidated Statements of Cash Flows Highlights ($ in millions):** | Metric | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Total cash provided by operating activities | $783 | $817 | | Total cash used in investing activities | $(369) | $(352) | | Total cash used in financing activities | $(574) | $(557) | | Decrease in cash, cash equivalents and restricted cash | $(155) | $(95) | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details the condensed consolidated statements of changes in shareholders' equity, including net earnings, dividends, and stock repurchases **Condensed Consolidated Statements of Changes in Shareholders' Equity Highlights ($ in millions):** | Metric | Balances at Feb 1, 2025 | Balances at Aug 2, 2025 | | :-------------------------- | :---------------------- | :---------------------- | | Total Equity | $2,808 | $2,716 | | Net earnings (six months) | - | $388 | | Common stock dividends (six months) | - | $(413) | | Repurchase of common stock (six months) | - | $(167) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes supporting the condensed consolidated financial statements, offering additional context and disclosures [Note 1. Basis of Presentation](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation) This note describes the basis of financial statement presentation, including seasonality, recent accounting pronouncements, and the impact of new legislation - The company's business is seasonal, with a large proportion of revenue and earnings generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season[21](index=21&type=chunk) - Recently issued accounting pronouncements include ASU 2023-09 (Income Taxes) effective after December 15, 2024, and ASU 2024-03 (Expense Disaggregation) effective after December 15, 2026, with the company evaluating their impacts[23](index=23&type=chunk)[24](index=24&type=chunk) - The One Big Beautiful Bill Act (OB3), signed July 4, 2025, extends key provisions of the 2017 Tax Cuts and Jobs Act but is not expected to have a material impact on income tax expense[25](index=25&type=chunk) **Supply Chain Financing Liabilities ($ in millions):** | Date | Amount | | :------------- | :----- | | August 2, 2025 | $872 | | February 1, 2025 | $398 | | August 3, 2024 | $729 | **Total Cash, Cash Equivalents and Restricted Cash ($ in millions):** | Date | Amount | | :------------- | :----- | | August 2, 2025 | $1,713 | | February 1, 2025 | $1,868 | | August 3, 2024 | $1,698 | - Restricted cash is primarily used to cover product protection plans under membership offerings and self-insurance liabilities[28](index=28&type=chunk) [Note 2. Restructuring](index=9&type=section&id=Note%202.%20Restructuring) This note details the company's restructuring initiatives, including associated charges, objectives, and expected financial impacts **Restructuring Charges ($ in millions):** | Initiative | Three Months Ended Aug 2, 2025 | Six Months Ended Aug 2, 2025 | | :------------------------------------------ | :----------------------------- | :--------------------------- | | Fiscal 2026 Labor and Store Optimization Initiative | $122 | $122 | | Best Buy Health Optimization and China Sourcing Initiative | $(6) | $105 | | Fiscal 2024 Restructuring Initiative | $(2) | $(4) | | Fiscal 2023 Resource Optimization Initiative | $- | $- | | **Total** | **$114** | **$223** | - The Fiscal 2026 Labor and Store Optimization Initiative, commenced in Q2 FY26, aims to align field resources with changing customer behaviors, close select non-traditional store locations, and redirect corporate resources, incurring **$122 million** in charges, primarily termination benefits (**$81 million**) and asset impairments (**$41 million**)[31](index=31&type=chunk)[32](index=32&type=chunk) - The Best Buy Health Optimization and China Sourcing Initiative, commenced in Q1 FY26, focuses on optimizing the Best Buy Health business and reducing tariff exposure, incurring **$105 million** in charges for the six months ended August 2, 2025, including asset impairments and other costs (**$70 million**) and termination benefits (**$35 million**)[34](index=34&type=chunk)[35](index=35&type=chunk) - Restructuring accrual liabilities for termination benefits totaled **$81 million** for the Labor and Store Optimization Initiative and **$26 million** for the Best Buy Health Optimization Initiative as of August 2, 2025, with expected future cash payments primarily during fiscal 2026[33](index=33&type=chunk)[37](index=37&type=chunk) [Note 3. Goodwill and Intangible Assets](index=11&type=section&id=Note%203.%20Goodwill%20and%20Intangible%20Assets) This note provides information on goodwill and intangible assets, including impairment charges and amortization expense - A goodwill impairment of **$475 million** was recorded in fiscal 2025 within the Domestic segment for the Best Buy Health reporting unit[41](index=41&type=chunk) - A full impairment of **$16 million** related to the only remaining indefinite-lived intangible asset was recorded in the second quarter of fiscal 2026 due to restructuring activity[42](index=42&type=chunk) **Definite-Lived Intangible Assets (Gross Carrying Amount, $ in millions, as of August 2, 2025):** | Asset Category | Gross Carrying Amount | | :------------------ | :-------------------- | | Customer relationships | $339 | | Tradenames | $87 | | Developed technology | $56 | | **Total** | **$482** | **Amortization Expense ($ in millions):** | Period | August 2, 2025 | August 3, 2024 | | :----------------- | :------------- | :------------- | | Three Months Ended | $4 | $5 | | Six Months Ended | $9 | $11 | [Note 4. Fair Value Measurements](index=12&type=section&id=Note%204.%20Fair%20Value%20Measurements) This note describes the company's fair value measurements for financial and non-financial assets and liabilities **Recurring Fair Value Measurements ($ in millions, as of August 2, 2025):** | Asset Category | Fair Value Hierarchy | Fair Value | | :--------------------------------- | :------------------- | :--------- | | Money market funds (Cash) | Level 1 | $78 | | Time deposits (Cash) | Level 2 | $258 | | Money market funds (Other current assets) | Level 1 | $123 | | Time deposits (Other current assets) | Level 2 | $40 | | Marketable securities (Other assets) | Level 1 | $40 | | Interest rate swap derivative (Long-term liabilities) | Level 2 | $- | - Nonrecurring fair value remeasurements, primarily asset impairments and other costs from restructuring initiatives, were based on significant unobservable inputs (Level 3)[49](index=49&type=chunk) **Long-Term Debt Fair Value vs. Carrying Value ($ in millions, as of August 2, 2025):** | Metric | Fair Value | Carrying Value | | :----------- | :--------- | :------------- | | Long-term debt | $1,077 | $1,150 | [Note 5. Derivative Instruments](index=12&type=section&id=Note%205.%20Derivative%20Instruments) This note details the company's use of derivative instruments for hedging foreign exchange and interest rate risks - The company uses foreign exchange forward contracts to hedge against Canadian dollar exchange rate fluctuations and interest rate swaps to mitigate interest rate risk on its **$500 million** notes due October 1, 2028[52](index=52&type=chunk) **Notional Amounts of Derivative Instruments ($ in millions, as of August 2, 2025):** | Contract Type | Amount | | :---------------------------------------- | :----- | | Derivatives designated as net investment hedges | $119 | | Derivatives designated as fair value hedges (interest rate swaps) | $500 | | No hedge designation (foreign exchange contracts) | $62 | | **Total** | **$681** | [Note 6. Debt](index=13&type=section&id=Note%206.%20Debt) This note provides information on the company's debt instruments, including credit facilities and long-term notes - On April 18, 2025, the company entered into a new **$1.25 billion** five-year senior unsecured revolving credit facility, expiring in April 2030, with no borrowings outstanding as of August 2, 2025[55](index=55&type=chunk) **Long-Term Debt ($ in millions, as of August 2, 2025):** | Debt Type | Amount | | :---------------------------------- | :----- | | Notes, 4.45%, due October 1, 2028 | $500 | | Notes, 1.95%, due October 1, 2030 | $650 | | Interest rate swap valuation adjustments | $- | | Debt discounts and issuance costs | $(6) | | Finance lease obligations | $30 | | **Total long-term debt** | **$1,174** | | Less current portion | $(10) | | **Total long-term debt, less current portion** | **$1,164** | [Note 7. Revenue](index=14&type=section&id=Note%207.%20Revenue) This note details the company's revenue recognition policies, including contract liabilities and estimated future revenue **Contract Liabilities ($ in millions, as of August 2, 2025):** | Liability Type | Amount | | :-------------------------- | :----- | | Unredeemed gift card liabilities | $230 | | Deferred revenue | $889 | | Accrued liabilities (short-term) | $60 | | Long-term liabilities (contract) | $213 | - During the first six months of fiscal 2026, **$853 million** of revenue was recognized from contract liabilities that existed at the beginning of the period, compared to **$893 million** in the prior year[59](index=59&type=chunk) **Estimated Future Revenue from Long-Term Contract Liabilities ($ in millions):** | Fiscal Year | Amount | | :------------------ | :----- | | Remainder of fiscal 2026 | $17 | | Fiscal 2027 | $33 | | Fiscal 2028 | $29 | | Fiscal 2029 | $26 | | Fiscal 2030 | $26 | | Fiscal 2031 | $26 | | Thereafter | $89 | [Note 8. Earnings per Share](index=15&type=section&id=Note%208.%20Earnings%20per%20Share) This note presents the calculation of basic and diluted earnings per share **Basic and Diluted Earnings Per Share ($ and shares in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net earnings | $186 | $291 | $388 | $537 | | Weighted-average common shares outstanding (Basic) | 211.5 | 216.0 | 211.8 | 216.1 | | Weighted-average common shares outstanding (Diluted) | 212.0 | 217.1 | 212.5 | 217.2 | | Basic earnings per share | $0.88 | $1.35 | $1.83 | $2.49 | | Diluted earnings per share | $0.87 | $1.34 | $1.82 | $2.47 | [Note 9. Repurchase of Common Stock](index=15&type=section&id=Note%209.%20Repurchase%20of%20Common%20Stock) This note provides details on the company's common stock repurchase program and activity - The Board of Directors approved a **$5.0 billion** share repurchase program on February 28, 2022, with **$3.1 billion** remaining available for repurchases as of August 2, 2025[62](index=62&type=chunk) **Common Stock Repurchase Activity ($ and shares in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Total cost of shares repurchased | $67 | $98 | $167 | $150 | | Average price per share | $68.65 | $82.57 | $66.03 | $80.86 | | Number of shares repurchased and retired | 0.9 | 1.1 | 2.5 | 1.8 | [Note 10. Contingencies](index=15&type=section&id=Note%2010.%20Contingencies) This note discusses the company's legal proceedings and contingent liabilities - The company is involved in legal proceedings and makes accruals for matters where liability is probable and estimable, disclosing matters with a reasonably possible material impact[64](index=64&type=chunk) [Note 11. Segments](index=16&type=section&id=Note%2011.%20Segments) This note provides financial information by reportable segment, including revenue, operating income, and assets **Segment Revenue Information ($ in millions):** | Segment | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Domestic | $8,698 | $8,623 | $16,825 | $16,826 | | International | $740 | $665 | $1,380 | $1,309 | | **Total Revenue** | **$9,438** | **$9,288** | **$18,205** | **$18,135** | **Adjusted Operating Income by Segment ($ in millions):** | Segment | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Domestic | $351 | $364 | $680 | $689 | | International | $18 | $17 | $22 | $25 | | **Total Adjusted Operating Income** | **$369** | **$381** | **$702** | **$714** | **Capital Expenditures by Segment ($ in millions):** | Segment | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------- | :--------------------------- | :--------------------------- | | Domestic | $311 | $298 | | International | $30 | $37 | | **Total Capital Expenditures** | **$341** | **$335** | **Total Assets by Segment ($ in millions, as of August 2, 2025):** | Segment | Amount | | :-------------- | :----- | | Domestic | $13,926 | | International | $1,327 | | **Total Assets** | **$15,253** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Best Buy's financial condition, operations, and liquidity, noting revenue growth from comparable sales, but decreased operating income and EPS due to restructuring and tariff impacts [Overview](index=18&type=section&id=Overview) This overview outlines Best Buy's purpose, operational segments, and the seasonal nature of its business - Best Buy's purpose is to enrich lives through technology and personalize technology solutions for every stage of life, leveraging tech expertise and human touch across online, in-store, and in-home channels[72](index=72&type=chunk) - The company operates with two reportable segments: Domestic (U.S. operations and Best Buy Health) and International (Canada operations)[73](index=73&type=chunk) - The business is seasonal, with a large proportion of revenue and earnings generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season[74](index=74&type=chunk) [Comparable Sales](index=18&type=section&id=Comparable%20Sales) This section defines comparable sales, a key metric for evaluating performance, detailing its inclusions and exclusions - Comparable sales is a key metric used to evaluate the performance of existing stores, websites, and call centers, measuring the change in net sales for a particular period over the comparable prior period[75](index=75&type=chunk) - The calculation includes revenue from stores, websites, and call centers operating for at least 14 full months, online sales, credit card revenue, gift card breakage, commercial sales, and sales to wholesalers and dealers[75](index=75&type=chunk) - Exclusions from comparable sales include revenue from stores closed more than 14 days, certain periodic warranty-related profit-share revenue, and the effect of foreign currency exchange rate fluctuations[75](index=75&type=chunk) [Non-GAAP Financial Measures](index=19&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures to provide additional insights into performance, excluding specific adjustments - Non-GAAP financial measures, such as adjusted operating income and adjusted diluted EPS, are used to provide additional useful information for evaluating current and future performance, and for internal management reporting[77](index=77&type=chunk) - These measures typically exclude adjustments for items like restructuring charges, goodwill and acquired intangible asset impairments, price-fixing settlements, gains/losses on disposals of subsidiaries, amortization of definite-lived intangible assets associated with acquisitions, and related tax effects[77](index=77&type=chunk) - The term 'constant currency' is used to represent results adjusted to exclude foreign currency impacts, providing supplementary information in light of currency rate fluctuations[78](index=78&type=chunk) [Tariffs](index=19&type=section&id=Tariffs) This section discusses the ongoing uncertainty and impact of tariffs on the company's supply chain and product sourcing - The company continues to face significant uncertainty regarding the scope, timing, and magnitude of tariffs and is working with vendors to mitigate their impact[80](index=80&type=chunk) - While direct imports are **2% to 3%** of the overall assortment, an estimated **30% to 35%** of products purchased are from China (down from **55%** previously), with approximately **25%** from the U.S. and Mexico[81](index=81&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) This section presents a detailed analysis of the company's consolidated and segment-specific financial performance [Consolidated Results](index=20&type=section&id=Consolidated%20Results) This section summarizes the company's consolidated revenue, operating income, net earnings, and diluted EPS performance **Consolidated Financial Data Highlights ($ in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Revenue | $9,438 | $9,288 | $18,205 | $18,135 | | Revenue % change | 1.6 % | (3.1)% | 0.4 % | (4.8)% | | Comparable sales % change | 1.6 % | (2.3)% | 0.4 % | (4.2)% | | Operating income | $251 | $383 | $470 | $695 | | Operating income as a % of revenue | 2.7 % | 4.1 % | 2.6 % | 3.8 % | | Net earnings | $186 | $291 | $388 | $537 | | Diluted EPS | $0.87 | $1.34 | $1.82 | $2.47 | - Comparable sales increased in Q2 FY26, primarily driven by growth in gaming, computing, and mobile phones, partially offset by declines in home theater, appliances, tablets, and drones[84](index=84&type=chunk) - Operating income rate and diluted EPS decreased in both the second quarter and first six months of fiscal 2026, primarily due to higher restructuring charges[86](index=86&type=chunk) [Store Summary](index=21&type=section&id=Store%20Summary) This section provides a summary of the company's store count by segment and expected changes **Stores Open by Reportable Segment:** | Store Type | August 2, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :------------- | | Best Buy (Domestic) | 885 | 890 | | Outlet Centers (Domestic) | 23 | 26 | | Pacific Sales (Domestic) | 20 | 20 | | Yardbird (Domestic) | 21 | 23 | | **Total Domestic stores** | **949** | **959** | | Canada Best Buy stores (International) | 128 | 129 | | Canada Best Buy Mobile stand-alone stores (International) | 28 | 32 | | **Total International stores** | **156** | **161** | | **Total stores** | **1,105** | **1,120** | - In fiscal 2026, the company expects to reduce its traditional Domestic Best Buy store count by approximately **5 to 10** stores and close select non-traditional Domestic store locations as part of a restructuring initiative[91](index=91&type=chunk) [Income Tax Expense](index=21&type=section&id=Income%20Tax%20Expense) This section details the company's income tax expense and effective tax rate, explaining key drivers of changes **Income Tax Expense and Effective Tax Rate (ETR):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :---------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Income tax expense | $68 | $101 | $87 | $181 | | ETR | 26.8 % | 25.8 % | 18.3 % | 25.3 % | - The decrease in income tax expense for both periods was primarily due to lower pre-tax income and the discrete tax impacts of restructuring charges and the exit of a Best Buy Health component[92](index=92&type=chunk)[93](index=93&type=chunk) - ETR increased in Q2 FY26 due to decreased tax benefits and increased U.S. taxes from sourcing operations, but decreased for the six-month period primarily due to discrete tax impacts of restructuring and the Best Buy Health exit[92](index=92&type=chunk)[93](index=93&type=chunk) [Segment Performance Summary](index=22&type=section&id=Segment%20Performance%20Summary) This section provides a summary of financial performance for both the Domestic and International segments [Domestic Segment](index=22&type=section&id=Domestic%20Segment) This section details the Domestic segment's revenue, comparable sales, gross profit, and adjusted SG&A performance **Domestic Segment Financial Data Highlights ($ in millions):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Revenue | $8,698 | $8,623 | $16,825 | $16,826 | | Revenue % change | 0.9 % | (3.0)% | — % | (4.9)% | | Comparable sales % change | 1.1 % | (2.3)% | 0.2 % | (4.3)% | | Total online revenue | $2,856 | $2,718 | $5,435 | $5,243 | | Comparable online sales % change | 5.1 % | (1.6)% | 3.7 % | (3.8)% | | Gross profit as a % of revenue | 23.4 % | 23.5 % | 23.4 % | 23.4 % | | Adjusted operating income as a % of revenue | 4.0 % | 4.2 % | 4.0 % | 4.1 % | - Domestic segment revenue increased in Q2 FY26, driven by comparable sales growth in gaming, computing, and mobile phones, partially offset by declines in home theater, appliances, tablets, and drones[97](index=97&type=chunk) - Domestic segment gross profit rate decreased in Q2 FY26 primarily due to lower product margin rates and a higher sales mix of lower-margin categories[100](index=100&type=chunk) - Domestic segment adjusted SG&A increased in Q2 FY26 due to higher compensation expense (including medical claims), the lapping of a favorable legal settlement, and higher technology expense, partially offset by lower Best Buy Health expenses[102](index=102&type=chunk) **Domestic Segment Comparable Sales % Change by Revenue Category (Three Months Ended Aug 2, 2025):** | Category | Comparable Sales % Change | | :------------------------ | :------------------------ | | Computing and Mobile Phones | 3.8 % | | Consumer Electronics | (4.9)% | | Appliances | (8.5)% | | Entertainment | 37.5 % | | Services | (1.0)% | | Other | (6.3)% | [International Segment](index=23&type=section&id=International%20Segment) This section details the International segment's revenue, comparable sales, gross profit, and adjusted SG&A performance **International Segment Financial Data Highlights ($ in millions):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Revenue | $740 | $665 | $1,380 | $1,309 | | Revenue % change | 11.3 % | (4.0)% | 5.4 % | (3.7)% | | Comparable sales % change | 7.6 % | (1.8)% | 3.5 % | (2.6)% | | Gross profit as a % of revenue | 21.8 % | 23.9 % | 21.9 % | 23.4 % | | Adjusted operating income as a % of revenue | 2.4 % | 2.6 % | 1.6 % | 1.9 % | - International segment revenue increased in Q2 FY26, driven by comparable sales growth in gaming, computing, and mobile phones, and revenue from Best Buy Express locations opened after Q2 FY25[107](index=107&type=chunk) - International segment gross profit rate decreased in both the second quarter and first six months of fiscal 2026, primarily due to lower product margin rates[110](index=110&type=chunk) - International segment adjusted SG&A remained relatively unchanged in Q2 FY26 but decreased for the six-month period due to favorable foreign exchange rates, partially offset by higher employee compensation and Best Buy Express expenses[111](index=111&type=chunk) **International Segment Comparable Sales % Change by Revenue Category (Three Months Ended Aug 2, 2025):** | Category | Comparable Sales % Change | | :------------------------ | :------------------------ | | Computing and Mobile Phones | 9.5 % | | Consumer Electronics | 1.3 % | | Appliances | (5.7)% | | Entertainment | 57.3 % | | Services | 2.2 % | | Other | 6.5 % | [Consolidated Non-GAAP Financial Measures](index=25&type=section&id=Consolidated%20Non-GAAP%20Financial%20Measures) This section presents consolidated non-GAAP financial measures, including adjusted operating income and adjusted diluted EPS **Consolidated Non-GAAP Financial Measures ($ in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Adjusted operating income | $369 | $381 | $702 | $714 | | Adjusted operating income % of revenue | 3.9 % | 4.1 % | 3.9 % | 3.9 % | | Adjusted effective tax rate | 27.8 % | 25.8 % | 27.4 % | 25.3 % | | Adjusted diluted EPS | $1.28 | $1.34 | $2.43 | $2.54 | - Adjusted operating income rate decreased in Q2 FY26 primarily due to an unfavorable gross profit rate, but remained effectively unchanged for the first six months of fiscal 2026[118](index=118&type=chunk) - Adjusted diluted EPS decreased in both the second quarter and first six months of fiscal 2026 due to lower adjusted earnings, partially offset by lower diluted weighted-average common shares outstanding[120](index=120&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, sources of liquidity, debt, and capital allocation strategies [Cash and Cash Equivalents](index=26&type=section&id=Cash%20and%20Cash%20Equivalents) This section details the company's cash and cash equivalents, explaining changes over time **Cash and Cash Equivalents ($ in millions):** | Date | Amount | | :------------- | :----- | | August 2, 2025 | $1,456 | | February 1, 2025 | $1,578 | | August 3, 2024 | $1,387 | - The decrease in cash and cash equivalents from February 1, 2025, was primarily due to dividend payments, capital expenditures, and share repurchases, partially offset by positive cash flows from operations[122](index=122&type=chunk) [Cash Flows](index=26&type=section&id=Cash%20Flows) This section analyzes cash flows from operating, investing, and financing activities **Cash Flows by Activity ($ in millions, Six Months Ended):** | Activity | August 2, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :------------- | | Operating activities | $783 | $817 | | Investing activities | $(369) | $(352) | | Financing activities | $(574) | $(557) | | Decrease in cash, cash equivalents and restricted cash | $(155) | $(95) | - The decrease in cash provided by operating activities was primarily driven by the timing and volume of inventory purchases and payments and lower net earnings[125](index=125&type=chunk) - The increase in cash used in investing activities was primarily due to the disposal of a component of the Best Buy Health business[126](index=126&type=chunk) - The increase in cash used in financing activities was primarily driven by higher share repurchases[127](index=127&type=chunk) [Sources of Liquidity](index=26&type=section&id=Sources%20of%20Liquidity) This section identifies the primary sources of the company's liquidity, including operating cash and credit facilities - The company's most significant sources of liquidity are funds generated by operating activities, available cash and cash equivalents, credit facilities, other debt arrangements, and trade payables[128](index=128&type=chunk) - A new **$1.25 billion** five-year senior unsecured revolving credit facility was entered into on April 18, 2025, expiring in April 2030, with no borrowings outstanding as of August 2, 2025[129](index=129&type=chunk) [Restricted Cash](index=27&type=section&id=Restricted%20Cash) This section provides information on restricted cash balances and the reasons for their restriction **Restricted Cash ($ in millions):** | Date | Amount | | :------------- | :----- | | August 2, 2025 | $257 | | February 1, 2025 | $290 | | August 3, 2024 | $311 | - The decrease in restricted cash from February 1, 2025, was primarily due to releases of product protection reserves based on claims and purchasing behaviors, and a decrease in cash for self-insurance liabilities[130](index=130&type=chunk) [Debt and Capital](index=27&type=section&id=Debt%20and%20Capital) This section outlines the company's debt structure and capital obligations - As of August 2, 2025, the company had **$500 million** of principal amount of notes due October 1, 2028, and **$650 million** of principal amount of notes due October 1, 2030[131](index=131&type=chunk) [Share Repurchases and Dividends](index=27&type=section&id=Share%20Repurchases%20and%20Dividends) This section details the company's share repurchase program and dividend payments - The company's long-term capital allocation strategy prioritizes funding operations and growth investments, then returning excess cash to shareholders through dividends and share repurchases while maintaining investment-grade credit metrics[132](index=132&type=chunk) - A **$5.0 billion** share repurchase program was approved on February 28, 2022, with no expiration date[133](index=133&type=chunk) **Share Repurchase and Dividend Activity ($ and shares in millions, except per share amounts):** | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Total cost of shares repurchased | $67 | $98 | $167 | $150 | | Average price per share | $68.65 | $82.57 | $66.03 | $80.86 | | Total number of shares repurchased | 0.9 | 1.1 | 2.5 | 1.8 | | Regular quarterly cash dividend per share | $0.95 | $0.94 | $1.90 | $1.88 | | Cash dividends declared and paid | $201 | $203 | $403 | $405 | - Cash dividends declared and paid decreased in both periods due to fewer shares outstanding, partially offset by increases in the regular quarterly cash dividend per share[135](index=135&type=chunk) [Off-Balance-Sheet Arrangements and Contractual Obligations](index=27&type=section&id=Off-Balance-Sheet%20Arrangements%20and%20Contractual%20Obligations) This section discusses off-balance-sheet arrangements and contractual obligations, noting any material changes - The company's liquidity is not dependent on off-balance-sheet financing arrangements, other than its **$1.25 billion** in undrawn capacity on its Five-Year Facility Agreement as of August 2, 2025[136](index=136&type=chunk) - There has been no material change in contractual obligations other than in the ordinary course of business since the end of fiscal 2025[137](index=137&type=chunk) [Significant Accounting Policies and Estimates](index=28&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section confirms no significant changes to the company's accounting policies or critical estimates since the last fiscal year-end - There have been no significant changes in the company's significant accounting policies or critical accounting estimates since the end of fiscal 2025[138](index=138&type=chunk) [New or Recently Issued Accounting Pronouncements](index=28&type=section&id=New%20or%20Recently%20Issued%20Accounting%20Pronouncements) This section refers to Note 1 for details on new or recently issued accounting pronouncements and their assessed impact - For a description of applicable new or recently issued accounting pronouncements and their assessed impact, refer to Note 1, Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements[139](index=139&type=chunk) [Safe Harbor Statement Under the Private Securities Litigation Reform Act](index=28&type=section&id=Safe%20Harbor%20Statement%20Under%20the%20Private%20Securities%20Litigation%20Reform%20Act) This statement advises readers on the forward-looking nature of the report and the inherent risks and uncertainties that could affect actual results - The report includes forward-looking statements that are subject to various risks and uncertainties, including macroeconomic pressures, competition, technological advancements, supply chain disruptions, and regulatory changes, which could cause actual results to differ materially[140](index=140&type=chunk) - Readers are advised to review Item 1A, Risk Factors, of the most recent Annual Report on Form 10-K for a description of important factors that could affect actual results[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to interest rate and foreign currency exchange rate risks, outlining management strategies and quantitative sensitivity analyses [Interest Rate Risk](index=29&type=section&id=Interest%20Rate%20Risk) This section discusses the company's exposure to short-term market interest rate changes and their potential impact on net interest expense - The company is exposed to changes in short-term market interest rates, which impact its net interest expense from cash, cash equivalents, restricted cash, and floating-rate debt[142](index=142&type=chunk) - As of August 2, 2025, the net asset balance exposed to interest rate changes was **$1.2 billion**, where a **50-basis point** increase or decrease in short-term interest rates would lead to an estimated **$6 million** increase or decrease in interest income, respectively[143](index=143&type=chunk) [Foreign Currency Exchange Rate Risk](index=29&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section addresses the company's market risk from foreign currency exchange rate fluctuations and its hedging strategies - The company has market risk from changes in foreign currency exchange rates related to its International segment operations[144](index=144&type=chunk) - Foreign currency forward contracts are utilized to manage foreign currency exposure, aiming to reduce volatility in net earnings, cash flows, and net asset value[144](index=144&type=chunk) - Foreign currency exchange rate fluctuations had an unfavorable impact of **$31 million** on revenue in the first six months of fiscal 2026, but the impact on net earnings was not significant for both the second quarter and first six months[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of August 2, 2025, with no material changes to internal control over financial reporting during the quarter - The company's disclosure controls and procedures were evaluated and deemed effective as of August 2, 2025, by management, including the CEO and CFO[147](index=147&type=chunk) - There were no changes in internal control over financial reporting during the fiscal quarter ended August 2, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[148](index=148&type=chunk) PART II — OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, equity sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10, Contingencies, for detailed information on the company's legal proceedings - For information about the company's legal proceedings, refer to Note 10, Contingencies, of the Notes to Condensed Consolidated Financial Statements[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, including shares purchased and remaining authorization under its program [Stock Repurchases](index=30&type=section&id=Stock%20Repurchases) This section provides specific details on the company's common stock repurchase program and recent activity - The Board approved a **$5.0 billion** share repurchase program on February 28, 2022, with no expiration date, and approximately **$3.118 billion** remained available under this program as of August 2, 2025[150](index=150&type=chunk)[151](index=151&type=chunk) **Stock Repurchases (Fiscal 2026 Second Quarter):** | Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | | :-------------------------------- | :----------------------------- | :--------------------------- | :--------------------------------------------------------------------------- | | May 4, 2025 through May 31, 2025 | - | $- | $3,184,000,000 | | June 1, 2025 through July 5, 2025 | 406,173 | $69.38 | $3,156,000,000 | | July 6, 2025 through August 2, 2025 | 563,745 | $68.13 | $3,118,000,000 | | **Total fiscal 2026 second quarter** | **969,918** | **$68.65** | **$3,118,000,000** | [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section includes information on Rule 10b5-1 trading arrangements and refers to financial notes for details on restructuring initiatives [Rule 10b5-1 Plan Elections](index=30&type=section&id=Rule%2010b5-1%20Plan%20Elections) This section confirms no changes to Rule 10b5-1 trading arrangements by directors or officers during the quarter - None of the company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended August 2, 2025[152](index=152&type=chunk) [Restructuring Initiatives](index=30&type=section&id=Restructuring%20Initiatives) This section refers to Note 2 for details on restructuring initiatives commenced in fiscal 2026 - Information regarding restructuring initiatives commenced in Q1 and Q2 fiscal 2026, including a labor and store optimization initiative and actions related to the Best Buy Health business, is incorporated by reference from Note 2, Restructuring[153](index=153&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance, compensation, certifications, and iXBRL financial data - Exhibits include Amended and Restated Articles of Incorporation, By-Laws, Long-Term Incentive Program Award Agreement, Executive Officer Separation and General Release Agreement, CEO and CFO Certifications (Sections 302 and 906), and iXBRL formatted financial information[156](index=156&type=chunk) Signatures This section contains the official signatures of the company's key executives, certifying the report - The report is signed by Corie Barry (Chief Executive Officer), Matthew Bilunas (Senior Executive Vice President, Chief Financial Officer & Enterprise Strategy), and Mathew R. Watson (Senior Vice President, Finance – Controller and Chief Accounting Officer) on September 5, 2025[158](index=158&type=chunk)

Core Insights - CTO Realty Growth, Inc. announced the grand opening of two new tenants, Barnes & Noble and Boot Barn, at Plaza at Rockwall, enhancing the retail offerings in a high-growth suburban market [1][2][3] Group 1: New Tenants - Barnes & Noble opened a 20,388-square-foot store on August 27, 2025, in a repurposed Staples location, aligning with CTO's strategy to attract destination-driven retail [2] - Boot Barn launched its 15,000-square-foot store on September 2, 2025, in a space previously occupied by JoAnn's, enhancing the Center's merchandising mix [3] Group 2: Plaza at Rockwall Overview - Plaza at Rockwall spans 446,487 square feet on 42 acres and is located in a rapidly growing suburb of Dallas, anchored by major retailers like Dick's Sporting Goods and Ulta Beauty [4] - The occupancy rate at the Center has improved to 99.1% following the openings of Boot Barn and Barnes & Noble [4] Group 3: Company Strategy - The openings of these retailers reflect CTO's ongoing strategy to curate a vibrant tenant mix that meets evolving consumer demand and creates long-term value for stakeholders [5]

Core Insights - RetailMeNot has launched a "5 to Buy" September savings event, offering one-day-only cash back exclusives of up to 30% across five popular shopping categories every Tuesday in September [1][2][3] Group 1: Event Details - The "5 to Buy" event is designed to help consumers shop early for the holiday season, providing access to savings on trending products and brands [2][3] - Categories featured in the event include Home & Decor, Toys & Gaming, Health & Beauty, Tech & Smart Home, and Travel, with specific dates for each category [6][7] Group 2: Consumer Behavior Insights - RetailMeNot's analysis indicates that over half of shoppers plan to start their holiday shopping before November, influenced by potential tariffs and supply chain disruptions [3] - The app-only savings are positioned as a strategic way for consumers to maximize cash back rewards and save money [3] Group 3: Company Overview - RetailMeNot is a leading savings destination that connects consumers with retailers, brands, and restaurants through online and in-store coupon codes and cash back offers [4] - The company aims to make everyday life more affordable for consumers [4]

Group 1 - Half of the Barron's Better Bets collection is considered too expensive or has low dividends, but eight out of the sixteen highest yield "Dogs" with the safest dividends are recommended for purchase [1] - The article highlights the importance of identifying high-yield stocks with reliable dividends, suggesting that investors should focus on these opportunities [1] Group 2 - A live video series on Facebook, titled "Underdog Daily Dividend Show," features portfolio candidates and encourages audience interaction regarding stock preferences [2] - The show aims to engage viewers by allowing them to comment on their favorite or least favorite stock tickers, which may influence future reports [2]

Core Insights - INIU is expanding its U.S. retail presence by offering its portable chargers at Best Buy, enhancing accessibility for consumers [2][5] - Since its inception in 2014, INIU has served over 40 million users across 174 countries, receiving multiple design and innovation awards [3][6] - The product lineup at Best Buy includes a variety of portable charging solutions, emphasizing fast charging, portability, and reliability [4][6] Company Overview - INIU has established itself as a trusted name in portable charging, known for its combination of sleek design and robust engineering [6] - The company holds over 100 technology patents and has expanded its offerings from basic power banks to advanced wireless and automotive charging solutions [3][6] Market Strategy - The partnership with Best Buy is seen as a significant step in reaching more U.S. customers and solidifying INIU's position as a leading portable charging brand [5][6] - INIU aims to become the go-to brand for portable charging solutions among American consumers, building on its existing retail partnerships [6]

Core Insights - Best Buy Co., Inc. reported second-quarter 2026 adjusted earnings of $1.28 per share, surpassing the consensus estimate of $1.21 [1] - Sales increased by 1.6% year over year to $9.44 billion, exceeding the consensus of $9.24 billion [2] Financial Guidance - The company reaffirmed its fiscal 2026 adjusted earnings per share guidance of $6.15-$6.30, compared to the consensus of $6.17 [2] Analyst Ratings and Expectations - JPMorgan analyst Christopher Horvers maintained an Overweight rating on Best Buy, raising the price target from $88 to $89 [3] - Horvers noted that June and July comparable sales were up 3%, with quarter-to-date comps running in low single digits, likely towards the high end due to anticipated post-back-to-school slowdown [3][4] Sales and Margin Outlook - Best Buy indicated that both sales and EPS are trending towards the upper end of full-year guidance [4] - The analyst believes the stock's setup has improved heading into the holiday season, with a conservative margin guide considering tariff and supply-chain efficiencies [4] Tariff and Sourcing Strategy - Blended tariff rates are increasing, but Best Buy is mitigating impacts while vendors provide support [5] - The sourcing mix includes approximately 25% from the U.S./Mexico (no tariffs), 30%-35% from China at a ~25% blended rate, and the remaining ~40% from other countries with varying tariffs [5] Market Trends and Future Projections - The pull-forward in computing, TVs, and appliances is largely complete, with a larger installed base expected to support a soft landing this year [6] - Average selling prices are anticipated to rise as AI features become mainstream in consumer electronics [6] - A credible path to a 5% operating margin over time is expected, with 6% becoming feasible when key categories, especially home theater, show positive trends [6] Stock Performance - Best Buy shares were trading higher by 1.33% to $73.63 at the time of publication [7]

Core Insights - Best Buy reported a 1.6% increase in quarterly sales, marking the highest growth rate in three years, driven by strong demand in computing, mobile phones, wearables, headphones, and gaming products, particularly due to the launch of Nintendo's Switch 2 [2][5] - Despite the positive sales growth, management decided to maintain its annual revenue guidance of $41.1 billion to $41.9 billion, citing ongoing uncertainties related to tariffs [3][4] Sales Performance - The sales growth of 1.6% was attributed to increased consumer spending in various product categories [2] - The back-to-school shopping season has been particularly strong, with record levels of spending reported, averaging over $1,200 per household [5][6] Management Outlook - CEO Corie Barry emphasized the need to maintain annual guidance due to potential tariff impacts on consumer behavior and business performance [3] - CFO Matt Bilunas noted that consumer hesitation in making purchases could lead to a slowdown in business as the holiday season approaches [4] Economic Context - The Bureau of Economic Analysis reported a GDP growth of 3.3% in the second quarter, driven by increased consumer spending, which may continue to benefit retailers like Best Buy [6] - Spending patterns indicate that essential items for back-to-school are prioritized by families, suggesting sustained consumer spending into the fall [7]

MATT: GOOD NVIDIA MORNING. POSITIVE FUTURES, 30 MINUTES UNTIL THE START OF TRADING. KATIE: BLOOMBERG "OPEN INTEREST" STARTS RIGHT NOW. MATT: THE AI BOOM TAKES A BREATHER, OR RATHER IT LOOKS LIKE THAT, WHEN IN SIGNALED A GROWTH SLOWED DOWN. NOW NVIDIA SHARES HAVE TURNED POSITIVE. THE CFO TELLS BLOOMBERG PRESIDENT TRUMP PLANNED TO SKIM THE $15 OFF A CHINA TRIP REVENUE COULD FACE LEGAL CHALLENGES. MEANWHILE ON THE DATA FRONT, THE U.S. ECONOMY EXPANDED IN THE SECOND QUARTER THANKS TO A PICKUP IN BUSINESS INVEST ...

Core Insights - Best Buy Co Inc (NYSE:BBY) shares fell 6.3% to $70.71 despite beating second-quarter estimates with earnings of $1.28 per share on revenue of $9.44 billion, indicating concerns over rising prices and tariff issues [1] - The stock is facing its fourth consecutive post-earnings decline, extending its year-to-date deficit to 17.5%, and has struggled with resistance around the $75 level since mid-March [2] - Analysts are generally bearish, with 15 out of 23 firms rating the stock as "hold" or worse, reflecting a shift in sentiment following the recent digital marketplace launch [3] Options Activity - Options trading indicates a bearish sentiment, with 11,000 puts traded, which is five times the average put volume, compared to 7,863 calls [4] - The November 70 put and the weekly 8/29 70-strike put are attracting significant attention, with new positions being opened for both [4]

Core Insights - Best Buy reported revenue of $9.44 billion for the quarter ended July 2025, marking a year-over-year increase of 1.6% and a surprise of +2.57% over the Zacks Consensus Estimate of $9.2 billion [1] - The company's EPS for the same period was $1.28, compared to $1.34 a year ago, with an EPS surprise of +4.92% over the consensus estimate of $1.22 [1] Financial Performance Metrics - Comparable store sales for the enterprise increased by 1.6% year-over-year, outperforming the average analyst estimate of -0.5% [4] - Domestic comparable store sales rose by 1.1% year-over-year, exceeding the average estimate of -0.6% [4] - International comparable store sales surged by 7.6% year-over-year, compared to the average estimate of -0.5% [4] Store Count and Revenue Breakdown - The total number of domestic stores was 949, matching the average estimate [4] - Domestic Best Buy stores numbered 885, slightly above the average estimate of 883 [4] - International revenue reached $740 million, surpassing the average estimate of $661.22 million and reflecting an 11.3% year-over-year increase [4] - Domestic revenue was reported at $8.7 billion, exceeding the average estimate of $8.53 billion with a year-over-year change of +0.9% [4] Stock Performance - Best Buy shares have returned +14.7% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]