- Best Buy Co Inc BBY reported a second-quarter FY23 sales decline of 12.8% year-on-year to $10.33 billion, beating the consensus of $10.24 billion.
- Domestic revenue declined 13.1% Y/Y, and International revenue fell 9.3%. Enterprise comparable sales decreased 12.1%.
- Gross profit fell 18.6% Y/Y to $2.3 billion, with the margin contracting 160 basis points to 22.1%. Operating income as a percentage of revenue contracted 310 basis points to 3.6%. Operating income for the quarter fell 53.5% to $371 million.
- Non-GAAP EPS of $1.54 beat the analyst consensus of $1.27.
- Best Buy held $1.2 billion in cash and equivalents as of July 30, 2022. Cash used by operating activities for the six months totaled $(709) million.
- "We are focused on balancing our near-term response to difficult conditions and managing well what is in our control, while also delivering on our strategic initiatives and what will be important for our long-term growth. This includes actively assessing further actions to evolve our operating model, manage profitability and iterate on our growth initiatives," said CEO Corie Barry.
- BBY's board of directors has authorized the payment of its regular quarterly cash dividend of $0.88 per common share, payable on October 11, 2022, to shareholders of record on September 20, 2022.
- Outlook: Best Buy sees Q3 comparable sales decline slightly more than 12.1%.
- For FY23, the company expects comparable sales to decline by around 11%.
- Restructuring: BBY said it commenced an enterprise-wide restructuring initiative to better align its spending with critical strategies and operations.
- BBY incurred $34 million of such restructuring costs in Q2, primarily related to termination benefits. It expects to incur additional charges for this initiative through the remainder of FY23.
- Price Action: BBY shares are trading higher by 5.05% at $77.42 on the last check Tuesday.
- Photo Via Company
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