- Best Buy Co Inc BBY reported a fourth-quarter FY23 revenue decline of 10% year-on-year to $14.735 billion, beating the consensus of $14.720 billion.
- Domestic revenue decreased 9.8% Y/Y, and International revenue fell 12.2%. Enterprise comparable sales decreased by 9.3%.
- The gross margin was flattish at 20%.
- The operating margin declined by 80 bps to 4.1%. Operating income fell to $597 million, down from $803 million.
- Adjusted EPS of $2.61 beat the consensus of $2.11.
- Best Buy held $1.87 billion in cash and equivalents.
- Dividend: The board approved a 5% increase in the regular quarterly dividend to $0.92 per share.
- "As we enter FY24, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers," said Matt Bilunas, Best Buy CFO.
- "As a result, our outlook assumes comparable sales decline 3% to 6% for the year, with the most sales pressure in the first quarter, as year-over-year comparisons ease through the year."
- "During FY24, we expect to expand our gross profit rate approximately 40 to 70 basis points versus the past year as we evolve our membership program and realize benefits from our cost optimization efforts," Bilunas continued.
- FY24 Outlook: The company expects $43.8 billion to $45.2 billion in revenue, below the consensus of $45.73 billion.
- Best Buy expects a comparable sales decline of 3.0% - 6.0%.
- Best Buy expects adjusted diluted EPS of $5.70 - $6.50, below the consensus of $6.71.
- Price Action: BBY shares are trading lower by 3.21% at $79.89 premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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