Best Buy Clocks 8.5% Revenue Decline In Q1; Cuts FY23 Outlook Citing Macro Conditions

Best Buy Co Inc BBY reported a first-quarter FY23 sales decline of 8.5% year-on-year to $10.65 billion, beating the consensus of $10.43 billion.
Domestic revenue fell 8.7% Y/Y, and International revenue declined 5.4%.
Enterprise comparable sales decreased 8% versus 37.2% growth last year.
Gross profit decreased 13.3% Y/Y to $2.4 billion, and the margin contracted 120 basis points to 22.1%.
The operating margin contracted from 6.6% to 4.3%. Operating income for the quarter declined 39.9% to $462 million.
Adjusted EPS of $1.57 missed the analyst consensus of $1.63.
Best Buy held $640 million in cash and equivalents as of April 30, 2022.
Dividend: BBY board has authorized the payment of a regular quarterly cash dividend of $0.88 per share, payable on July 5, 2022, to shareholders of record on June 14, 2022.
Outlook: Best Buy has cut FY23 sales guidance to $48.3 billion - $49.9 billion from $49.3 billion - $50.8 billion, versus the consensus of $50.12 billion.
Best Buy has also cut its adjusted EPS outlook to $8.40 - $9.00 from $8.85 - $9.15, against the consensus of $8.90.
Price Action: BBY shares are trading higher by 0.85% at $73.21 on the last check Tuesday.

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