Best Buy Co., Inc. · NYSE:BBY
Best Buy — Q4 FY2023 Earnings Presentation
22 slides from Best Buy's earnings presentation, Mar 2, 2023
Slide 1: Best Buy Q4 FY23 Financial Recap
Best Buy (BBY) Q4 FY23 Financial Recap Prepared: 3/2/23
Slide 2: Presentation of financial information
BEST Presentation of financial information: BUY This presentation includes non-GAAP financial measures, such as non-GAAP operating income, non-GAAP diluted earnings per share ("EPS"), non-GAAP gross profit, and non-GAAP SG&A (Selling, General and Administrative) expense. These non-GAAP financial mea
Slide 3: Q4 FY23 CEO and CFO commentary
Q4FY23 “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
Slide 4: Q4 and FY23
Q4 and FY23 BUY... $ in millions, except per share amounts a4 | [ Fiscal Year Fiscal Year FY23 FY22 Change FY23 FY22 Change Enterprise Earnings Data Revenue $14,735 $16,365 10.0% $46,298 $51,761 10.6% Comparable sales % change 9.3% 2.3% 9.9% 10.4% Non-GAAP Financial Measures: Gross profit $2,940 $3,
Slide 5: Enterprise FY23 Quarterly Results
FY23 Enterprise Quarterly Results BUY... $inmillions Fiscal 2023 Qi Q2 Q3 a4 Fiscal Year Revenue $10,647 $10,329 $10,587 $14,735 $46,298 % change vs. FY22 -8.5% -12.8% 11.1% -10.0% -10.6% Comparable sales % change -8.0% 12.1% 10.4% -9.3% -9.9% Non-GAAP gross profit $2,353 $2,287 $2,332 $2,940 $9,912
Slide 6: Q4 FY23 Revenue
Q4FY23 $ in millions Enterprise Revenue Revenue % change Comparable sales % change Domestic Revenue Revenue % change Comparable sales % change Comparable online sales % change Online revenue as a % of Domestic total % of Enterprise total International Revenue Revenue % change Comparable sales % chan
Slide 7: Q4 FY23 vs. Q4 FY22
Q4 FY23 vs. Q4 FY22 Non-GAAP Gross Profit Variances: Favorable / (Unfavorable) $in millions Q4FY23 Q4FY22 Change Non-GAAP Gross Profit-Enterprise $2,940 $3,313 ($373) % of Enterprise revenue 20.0% 20.2% (20) bps Non-GAAP Gross Profit - Domestic $2,679 $2,999 ($320) % of Domestic revenue 19.8% 20.0%
Slide 8: Capital Allocation
BEST BUY... Capital Allocation Higher / $ in millions FY23 FY22 (Lower) Share Repurchases and Dividends $1,803 $4,190 ($2,387) Total cost of shares repurchased $1,014 $3,502 $(2,488) Cash dividends declared and paid $789 $688 $ 101 Capital Expenditures $930 $737 $193 E-commerce and information techn
Slide 9: FY24 Full Year
Note: FY24 includes a 53- week year in Q4 that is excluded from comparable sales. FY24 Full Year Enterprise revenue $43.8 - $45.2 billion Enterprise comparable sales decline (3%) - (6%) Non-GAAP operating income rate 3.7% - 4.1% Non-GAAP effective tax rate Approx. 24.5% Non-GAAP diluted EPS $5.70 -
Slide 10: FY24 Guidance Details
FY24 Guidance Details As of 3/2/23 Non-GAAP Operating Income Rate YoY Planning Assumptions + Revenue: Decline largest in Q1, improving + Gross profit optimization efforts through the year + Non-GAAP gross profit rate: Approx. 40 - 70 basis 4.4% Revised membership offering point expansion - * Non-GAA
Slide 11: Q1 FY24 Guidance Commentary
Q1FY24 Guidance Commentary + We anticipate that our first quarter comparable sales will decline by approximately 10%, which is similar to our revenue trends during the first 4 weeks of the quarter. + We expect our gross profit rate to improve compared to last year, with the expansion slightly below
Slide 12: Appendix
Appendix Additional Supporting Schedules and Non-GAAP Reconciliations
Slide 13: Enterprise Quarterly Non-GAAP Results
ax) Enterprise Quarterly Non-GAAP Results $ inmillions Variances: Higher / (Lower) %ot sof %of tof ot Fiscal Year a Revenue a2 Revenue a3 Revenue aa Revenue FY23 Revenue Revenue $10,647 $10,329 $10,587 $14,735 $46,298 Revenue % change 8.5% 12.8% 1.1% 10.0% 10.6% Comparable sales % change 8.0% 112.1%
Slide 14: Quarterly Comparable Sales
Quarterly Comparable Sales Note: Additional information on the calculation of our comparable sales and supporting information is contained within our most recent Form 10-K BEST BUY... Enterprise Comparable Sales’ [ Domestic Comparable Sales’ | [ International Comparable Sales’ | Qi Q2 Q3 Qa FY Qi Q2
Slide 15: Category Revenue Trends
a @ @ a4 Ff a a as a Computing and Mobile Phones 43% 42% 44% AN% 43% 10.5% 16.6% 1.4% 10.0% 12.0% Consumer Electronics 29% 30% 30% 33% 30% 9.7% 14.7% 12.8% 1.8% 12.2% Appliances 16% 7% 15% 12% 15% 2.9% 1.2% 9.6% 13.2% 5.7% Entertainment. 6% 5% 5% 9% 6% 13.6% 9.2% 4.6% 0.2% 5.5% Services 5% 5% 5% 5%
Slide 16: Category Revenue Trends
Category Revenue Trends Note: Additional information on the calculation of our comparable sales and supporting information is contained within our most recent Form 10-K Fiscal 2023 ‘Computing and Mobile Phones Consumer Electronics Appliances Entertainment Services Other Total Fiscal 2022 ‘Computing
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures BEST BUY... The following information provides reconciliations of the most comparable financial measures presented in accordance with accounting principles generally accepted in the U.S. (GAAP financial measures) to presented non-GAAP financial measures
Slide 18: Non-GAAP reconciliation Q1 FY23
Three Months Ended Three Months Ended April 30, 2022 May 1, 2021 Domestic International Consolidated Domestic International Consolidated Gross profit $ 2,170 $ 183 $ 2,353 $ 2,526 $ 189 $ 2,715 (1) Represents inventory markdown adjustments recorded % of revenue 21.9 % 24.3 % 22.1 % 23.3 % 23.7 % 23.
Slide 19: Non-GAAP reconciliation Q2 FY23
Three Months Ended Three Months Ended July 30, 2022 July 31, 2021 Domestic International Consolidated Domestic International Consolidated (1) Represents the non-cash amortization of definite-lived SG&A $ 1,732 $ 150 $ 1,882 $ 1,849 $ 160 $ 2,009 intangible assets associated with acquisitions, includ
Slide 20: Non-GAAP reconciliation Q3 FY23
Three Months Ended Three Months Ended October 29, 2022 October 30, 2021 Domestic International Consolidated Domestic International Consolidated SG&A $ 1,791 $ 150 $ 1,941 $ 1,962 $ 171 $ 2,133 % of revenue 18.3 % 19.1 % 18.3 % 17.9 % 18.5 % 17.9 % Intangible asset amortization1 (21) - (21) (20) - (2
Slide 21: Non-GAAP reconciliation Q4 FY23
Three Months Ended Three Months Ended January 28, 2023 January 29, 2022 Domestic International Consolidated Domestic International Consolidated SG&A $ 2,068 $ 189 $ 2,257 $ 2,299 $ 206 $ 2,505 % of revenue 15.3 % 15.7 % 15.3 % 15.3 % 15.0 % 15.3 % Intangible asset amortization1 (21) - (21) (22) - (2
Slide 22: Non-GAAP reconciliation FY23
Twelve Months Ended Twelve Months Ended January 28, 2023 January 29, 2022 Domestic International Consolidated Domestic International Consolidated Gross profit $ 9,106 $ 806 $ 9,912 $ 10,702 $ 938 $ 11,640 % of revenue 21.3 % 23.0 % 21.4 % 22.4 % 23.9 % 22.5 % Restructuring - inventory markdowns4 - -