Consumer Electronics Retail

Search documents
Best Buy Falls Short: Sales, Earnings Miss As Tariff Pressures Mount
Benzinga· 2025-05-29 13:31
Core Viewpoint - Best Buy Co Inc reported disappointing first-quarter 2026 earnings, with sales and adjusted earnings falling short of analyst expectations [1][2]. Financial Performance - First-quarter sales decreased by approximately 1% year-over-year to $8.77 billion, missing the analyst consensus estimate of $9.22 billion [1]. - Adjusted earnings were reported at $1.15, below the consensus of $1.31 [2]. - The gross profit margin remained stable at 23%, while the operating margin declined from 3.5% to 2.5% [2]. Guidance and Outlook - The company updated its full-year guidance, expecting annual comparable sales growth to range from a decline of 1% to an increase of 1%, with an adjusted operating income rate similar to last year at approximately 4.2% [2][4]. - For Q2 FY26, comparable sales are expected to be slightly down compared to last year, with an adjusted operating income rate projected at approximately 3.6% [3]. - Fiscal 2026 adjusted earnings guidance was lowered from a range of $6.20-$6.60 per share to $6.15-$6.30 per share, compared to the consensus of $6.13 per share [3]. - Sales guidance was also reduced from $41.4 billion to $42.2 billion down to a new range of $41.1 billion to $41.9 billion, with the consensus around $41.44 billion [3]. Revenue Breakdown - Domestic revenue of $8.13 billion decreased by 0.9%, primarily due to a 0.7% decline in comparable sales [4]. - The decline in comparable sales was driven by decreases in home theater, appliances, and drones, partially offset by growth in computing, mobile phone, and tablet categories [4]. - Domestic online revenue increased by 2.1% on a comparable basis to $2.58 billion, representing 31.7% of total domestic revenue compared to 30.8% last year [4].
Best Buy Says Tariffs May Lower Profits And Sales—Joining These Companies Warning Of Tariff Impacts
Forbes· 2025-05-29 13:18
Company Impact - Best Buy lowered full-year forecasts for profits and sales for fiscal year 2026 due to expected tariff impacts [1][2] - Abercrombie & Fitch cut its profit outlook for 2025, citing a 30% tariff on imports from China and a 10% tariff on other imports, estimating a $50 million hit to profits [2] - Macy's reduced its full-year earnings per share outlook, attributing it to tariffs and moderation in consumer discretionary spending [3] - Target expects sales decline throughout 2025, previously projecting 1% growth, due to weaker spending amid tariff uncertainty [3] - Diageo warned of a likely $150 million hit to annual profits in 2025, planning to offset half of this impact through unspecified actions [4] - Walmart's CEO indicated that higher tariffs would lead to higher prices, as the company cannot absorb all the pressure from narrow retail margins [5] - Ford expects tariffs to reduce earnings before interest and taxes by about $1.5 billion in 2025, suspending its full-year guidance [8] - General Motors lowered its earnings forecast for 2025 to between $10 billion and $12.5 billion, down from $13.7 billion to $15.7 billion, due to tariff impacts [11] Industry Trends - Companies across various sectors, including automotive, retail, and consumer goods, are withdrawing or lowering financial guidance due to tariff-related uncertainties [6][12] - The overall sentiment in the market reflects heightened caution, with many companies citing macroeconomic volatility and evolving trade policies as significant concerns [10][14] - The impact of tariffs is leading to increased operational costs and reduced consumer spending, affecting sales forecasts across multiple industries [9][15] - Airlines, including JetBlue and American Airlines, are pulling their full-year guidance due to macroeconomic uncertainty exacerbated by tariffs [12][16] - The uncertainty surrounding tariffs is causing companies like Snap and Logitech to decline issuing future guidance, reflecting a broader trend of caution in financial forecasting [13][16]
Best Buy(BBY) - 2026 Q1 - Earnings Call Transcript
2025-05-29 13:02
Financial Data and Key Metrics Changes - The company reported Q1 revenue of $8.8 billion, slightly below last year, with an adjusted operating income rate of 3.8%, flat year over year [7][39] - Adjusted diluted earnings per share decreased by 4% to $1.15, primarily due to lower investment income [39] - The gross profit rate improved by approximately 10 basis points to 23.4% compared to last year [41] Business Line Data and Key Metrics Changes - Comparable sales growth was driven by computing, mobile phones, and tablets, while home theater, appliances, and drones saw declines, resulting in a domestic comparable sales decline of 0.7% [8][39] - The combined computing and tablet categories achieved 6% comparable sales growth [8] - Online sales grew year over year for the second consecutive quarter, accounting for nearly 32% of total domestic sales [9] Market Data and Key Metrics Changes - Domestic revenue decreased by 0.9% to $8.1 billion, with international revenue of $640 million also down by 0.6% [40] - The revenue decrease included a negative foreign currency impact of approximately 450 basis points [40] Company Strategy and Development Direction - The company aims to strengthen its position as a leading omnichannel destination for technology while building new profit streams, including Best Buy Marketplace and Best Buy Ads [19][26] - Strategic priorities include improving omnichannel experiences, launching new profit streams, and driving operational effectiveness [19][31] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain resilient despite persistent inflation, focusing on value and thoughtful spending on big-ticket items [9][68] - The company updated its annual outlook, lowering the full-year comparable sales range to down 1% to up 1% and expecting an adjusted operating income rate of approximately 4.2% [18][44] Other Important Information - The company is actively managing the impact of tariffs, with China now representing approximately 30% to 35% of product COGS, down from 55% [12][52] - The company continues to target roughly 60 days of forward supply for inventory management [17] Q&A Session Summary Question: Can you help us understand the changes in China sourcing? - Management explained that China sourcing has decreased to 30-35% of COGS, with mitigation efforts from vendors and Best Buy helping to manage costs [52][53] Question: Did you see any pull forward in demand? - Management noted that while there may have been some pull forward in demand, it was difficult to quantify due to the Easter shift [60][61] Question: How is the advertising initiative performing? - Management indicated that incremental advertising revenue is expected to show up in gross margin, with plans to add more to revenue as the initiative develops [76][78] Question: What is the outlook for the marketplace launch? - Management confirmed that the marketplace is on track for a mid-year launch and is expected to be accretive overall despite potential cannibalization [93] Question: Are there other product launches to be excited about? - Management highlighted excitement around upcoming innovations in gaming, computing, and wearable technology, indicating strong consumer interest [95][96]
Best Buy(BBY) - 2026 Q1 - Earnings Call Transcript
2025-05-29 13:00
Financial Data and Key Metrics Changes - The company reported first quarter revenue of $8.8 billion, slightly below last year, with an adjusted operating income rate of 3.8%, flat year over year [6][36] - Adjusted diluted earnings per share decreased by 4% to $1.15, primarily due to lower investment income [36] - The gross profit rate improved by approximately 10 basis points to 23.4% compared to last year [36] Business Line Data and Key Metrics Changes - Comparable sales growth was driven by computing, mobile phones, and tablets, while there were declines in home theater, appliances, and drones, resulting in a domestic comparable sales decline of 0.7% [6][35] - The combined computing and tablet categories saw a 6% growth in comparable sales [6] - Domestic revenue decreased by 0.9% to $8.1 billion, with international revenue down 0.6% to $640 million [37] Market Data and Key Metrics Changes - The company noted that customer behavior remained resilient despite persistent inflation, with consumers being value-focused and thoughtful about big-ticket purchases [7][8] - Online sales grew year over year for the second consecutive quarter, accounting for nearly 32% of total domestic sales [6][7] Company Strategy and Development Direction - The company aims to strengthen its position as a leading omnichannel destination for technology while building new profit streams, including Best Buy Marketplace and Best Buy Ads [16][22] - Strategic priorities include improving omnichannel experiences, launching incremental profit streams, and driving operational effectiveness [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current tariff environment and updated the annual outlook, lowering the full-year comparable sales range to down 1% to up 1% [15][41] - The company expects growth in computing and tablets driven by product replacement needs and ongoing innovation [31][92] Other Important Information - The company is actively mitigating tariff impacts through various strategies, including leveraging manufacturing flexibility and negotiating costs with vendors [12][52] - The company plans to maintain approximately 60 days of forward supply in inventory and feels good about inventory levels for the back-to-school season [14] Q&A Session Summary Question: Can you help us understand the changes in China sourcing? - Management noted that the percentage of product COGS from China has decreased to approximately 30-35% from 55%, with half of the China-sourced products subject to 20% tariffs [50][51] Question: Did you see any pull forward in demand? - Management indicated that while there may have been some pull forward in demand, it was difficult to quantify due to the Easter shift impacting sales [56][58] Question: How do you view consumer behavior in light of tariffs? - Management stated that consumers remain resilient but are making trade-offs in their spending due to inflation and higher prices [64][66] Question: What is the expected impact of the marketplace on margins? - Management expects the marketplace to have a positive impact on operating income and gross profit rates, particularly in the back half of the year [83][89]
Stay Ahead of the Game With Best Buy (BBY) Q1 Earnings: Wall Street's Insights on Key Metrics
ZACKS· 2025-05-23 14:21
Core Viewpoint - Analysts forecast a decline in Best Buy's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming earnings release [1][2]. Earnings Estimates - Best Buy is expected to report earnings of $1.09 per share, reflecting a year-over-year decline of 9.2% [1]. - Revenue is anticipated to be $8.77 billion, showing a slight decline of 0.9% compared to the same quarter last year [1]. Revisions and Trends - The consensus EPS estimate has been revised upward by 0.2% over the past 30 days, indicating a reappraisal by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue by Product Category - Revenue from Domestic Computing and Mobile Phones is projected to be $3.53 billion, down 1.7% from the prior year [5]. - Revenue from Domestic Consumer Electronics is expected to reach $2.36 billion, reflecting a minimal decline of 0.1% [5]. - Domestic Appliances revenue is estimated at $1.07 billion, down 2.2% year-over-year [6]. - Revenue from Domestic Entertainment is forecasted to be $508.85 million, indicating a decline of 2.1% [6]. Geographic Revenue - Domestic revenue is estimated at $8.11 billion, down 1.1% from the previous year [7]. - International revenue is projected to be $639.25 million, reflecting a decrease of 0.7% [7]. Store Metrics - The total number of stores is expected to be 1,114, down from 1,117 in the same quarter last year [8]. - Domestic Yardbird Stand-Alone Stores are projected to be 21, compared to 23 a year ago [8]. - The number of Domestic U.S. Best Buy Outlet Centers is estimated at 25, up from 23 last year [8]. - Internationally, Canada Best Buy Mobile Stand-Alone Stores are expected to be 31, down from 32 [9]. - The number of Canada Best Buy Stores is projected to be 129, slightly up from 128 in the previous year [9]. Stock Performance - Over the past month, Best Buy shares have returned +7.2%, while the Zacks S&P 500 composite has returned +10.7% [9]. - Best Buy currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [9].
Best Buy: Tariff Environment Still Weighs On Outlook
Seeking Alpha· 2025-05-23 12:00
Best Buy Co., Inc. ( BBY ) is expected to report the company’s fiscal Q1 results from the February-April period in late May. While the quarter’s outlook is weak, I believe that investors should look forward more – current tariff uncertainty createsI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by underst ...
Fnac Darty: Information regarding the arrangements for taking part in the combined general meeting (ordinary and extraordinary) of May 28, 2024, Conditions for obtaining or consulting the documents prepared for the meeting
Globenewswire· 2025-05-07 16:30
Ivry-sur-Seine, France — May 7, 2025 REGULATED INFORMATION Information regarding the arrangements for taking part in the combined general meeting (ordinary and extraordinary) of May 28, 2024 Conditions for obtaining or consulting the documents prepared for the meeting The shareholders of the Company are invited to participate in the Combined Shareholders’ Meeting (ordinary and extraordinary) to be held on Wednesday, May 28, 2025 at 4.30 pm (Paris time) at: Urban Station - ESPACE DU CENTENAIRE 189, rue de ...
Best Buy: Short-Term Struggles Don't Define Long-Term Potential
Seeking Alpha· 2025-05-07 11:14
Group 1 - Best Buy (NYSE: BBY) is perceived by many investors as a company facing declining financials, profit margins, and stock prices, leading them to avoid investment due to short-term challenges like tariffs and inflation [1] - The article presents a contrasting view, suggesting that Best Buy is heavily undervalued with significant upside potential, making it an attractive option for value dividend investors focused on long-term growth [1] - The author emphasizes a strategy of investing in undervalued companies to benefit from long-term compounding and dividend income [1]
重庆苏宁易购“五一”大促全面启动!
Sou Hu Cai Jing· 2025-04-30 14:04
Group 1 - The core message indicates that since the implementation of the "old-for-new" appliance policy in August 2024, consumers have purchased over 100 million appliances, with more than 40 million purchased in 2025 alone, highlighting a strong consumer trend towards domestic products [1] - The "May Day" holiday is approaching, and the consumer market is experiencing a continuous increase in activity, with Chongqing Suning launching the "May Day Renewal Week" to offer significant discounts on over 100 appliance models [1][3] - The promotional activities include a commitment to "genuine products, genuine subsidies, and genuine 50% off," with a focus on providing a wide selection of products at competitive prices [3] Group 2 - During the "May Day" holiday, Chongqing Suning is actively participating in local government consumption promotion activities, creating unique experiences that combine city characteristics with quality consumption [4] - The company plans to host over 100 free interactive experiences, such as music concerts and food tasting events, across various stores to enhance customer engagement [4] - Additional services during this period include a 30-day price guarantee, a 7-day no-reason return policy, and personalized assistance from appliance consultants to ensure a seamless shopping experience [4]
Best Buy(BBY) - 2025 Q4 - Earnings Call Transcript
2025-03-04 15:30
Financial Data and Key Metrics Changes - The company reported almost $14 billion in revenue for Q4, with an adjusted operating income rate of 4.9% and adjusted earnings per share of $2.58, reflecting a 5% decrease in adjusted diluted earnings per share compared to the previous year [10][11][62]. - The enterprise comparable sales growth was 0.5%, with a 2.3% decline on a 52-week basis, indicating the company's ability to maintain profitability in a challenging sales environment [11][62]. - The domestic segment saw a 0.2% increase in comparable sales, while revenue decreased by 5.2% to $12.7 billion, primarily due to the impact of the previous year's extra week [63]. Business Line Data and Key Metrics Changes - The computing and tablet categories experienced a 9% growth in comparable sales, with laptop sales specifically increasing to 10% growth compared to 7% in Q3 [14][15]. - Sales in appliances, home theater, and gaming categories declined, impacting overall performance [14]. - The domestic gross profit rate increased by 50 basis points to 20.9%, driven by improvements in the services category, while the international gross profit rate rose by 40 basis points to 21.4% due to favorable supply chain expenses [65]. Market Data and Key Metrics Changes - Digital sales accounted for almost 40% of total domestic sales in Q4, with significant growth in the Best Buy app, which ranked as the 1 shopping app on the Apple App Store during Black Friday [13]. - International comparable sales increased by 3.8%, although revenue decreased by 0.2% due to the previous year's extra week and negative foreign currency impacts [64]. Company Strategy and Development Direction - The company aims to strengthen its position as a leading omnichannel destination for technology, focusing on improving customer experiences and launching new profit streams such as Best Buy Marketplace and Best Buy Ads [19][40]. - Fiscal '26 priorities include enhancing omnichannel experiences, scaling new profit streams, and driving operational effectiveness to offset pressures [19][50]. - The company plans to leverage AI for improved digital experiences and enhance physical store merchandising while closing less profitable locations [32][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience despite high inflation, anticipating flat to slightly up growth in the U.S. consumer electronics industry [22]. - The company expects comparable sales growth in the range of flat to 2% for the year, with growth weighted more in the second half due to product launches [23]. - Management acknowledged the potential impact of tariffs on pricing and consumer behavior, emphasizing the need for strategic navigation in a volatile environment [25][121]. Other Important Information - The company recorded a goodwill impairment charge of $475 million related to Best Buy Health, which is excluded from adjusted earnings [66]. - Capital expenditures for fiscal '25 were $706 million, down from $795 million in fiscal '24, reflecting a reduction in store-related investments [67]. - The quarterly dividend was increased to $0.95 per share, marking the 12th consecutive year of dividend increases [68]. Q&A Session Summary Question: Impact of tariffs on pricing and sales - Management indicated that the 10% tariff from China could result in a negative impact of approximately 1 point on comparable sales, with potential price increases depending on vendor actions and consumer reactions [77][80]. Question: Flexibility in supply chain regarding tariffs - Management highlighted their experienced team and ongoing communication with vendors to navigate supply chain adjustments and mitigate tariff impacts [95][97]. Question: Comparison of company performance to industry growth - Management stated that for Q4, the company's market share was flattish compared to last year, with notable share gains in computing and gaming categories [132][134].