March 2, 2023 — Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week fourth quarter ended January 28, 2023 (“Q4 FY23”), as compared to the 13-week fourth quarter ended January 29, 2022 (“Q4 FY22”).
Best Buy Co., Inc. (NYSE: BBY) reported fiscal Q4 adjusted earnings of $2.61 per diluted share, Analysts polled by Capital IQ expected $2.14.
Revenue for the quarter ended Jan. 28 was $14.74 billion, Analysts surveyed by Capital IQ expected $14.80 billion.
For fiscal 2024, the retailer said it expects adjusted earnings of $5.70 to $6.50 per diluted share. Analysts surveyed by Capital IQ expect $6.67.
The company expects revenue to be between $43.80 billion and $45.20 billion for the fiscal year. Analysts polled by Capital IQ expect $45.76 billion.
Comparable Sales Declined 9.3%
GAAP Diluted EPS of $2.23
Non-GAAP Diluted EPS of $2.61
Increased Quarterly Dividend 5% to $0.92 per Share
Expects FY24 Non-GAAP Diluted EPS of $5.70 to $6.50
“Today we are reporting Q4 sales that were in line with our expectations and profitability that was better than expected,” said Corie Barry, Best Buy CEO. “Throughout Q4 and FY23, we remained committed to balancing our near-term response to current conditions and managing well what is in our control, while also advancing our strategic initiatives and investing in areas important for our long-term performance.”
FY24 Financial Guidance
Best Buy is providing the following financial guidance for FY24, which includes 53 weeks.
Revenue of $43.8 billion to $45.2 billion
Comparable sales decline of 3.0% to 6.0%
Enterprise non-GAAP operating income rate2 of 3.7% to 4.1%
Non-GAAP effective income tax rate2 of approximately 24.5%
Non-GAAP diluted EPS2 of $5.70 to $6.50
Capital expenditures of approximately $850 million
Domestic Segment Q4 FY23 Results
Domestic revenue of $13.53 billion decreased 9.8% versus last year primarily driven by a comparable sales decline of 9.6%.
From a merchandising perspective, the largest drivers of the comparable sales decline on a weighted basis were computing, home theater, appliances and mobile phones. These drivers were partially offset by growth in the gaming and tablet categories.
Share Repurchases and Dividends
In Q4 FY23, the company returned a total of $743 million to shareholders through share repurchases of $549 million and dividends of $194 million. For the full year, the company returned a total of $1.8 billion to shareholders through share repurchases of $1.0 billion and dividends of $789 million.
BEST BUY CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS