Q4 Comparable Sales Decreased 2.3% Compared to 12.6% Growth in Q4 FY21
Q4 GAAP Diluted EPS of $2.62
Q4 Non-GAAP Diluted EPS of $2.73
FY22 GAAP Operating Income Rate of 5.9%
FY22 Non-GAAP Operating Income Rate of 6.0%
Increased Quarterly Dividend 26% to $0.88 per Share
Expects FY23 Non-GAAP Diluted EPS of $8.85 to $9.15
Expects FY25 Revenue of $53.5 billion to $56.5 billion
Expects FY25 Non-GAAP Operating Income Rate of 6.3% to 6.8%
MINNEAPOLIS--(BUSINESS WIRE)--Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week fourth quarter ended January 29, 2022 (“Q4 FY22”), as compared to the 13-week fourth quarter ended January 30, 2021 (“Q4 FY21”).
|
Q4 FY22 |
Q4 FY21 |
FY22 |
FY21 |
||||||||||
Revenue ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
||
Enterprise |
$ |
16,365 |
|
|
$ |
16,937 |
|
$ |
51,761 |
|
|
$ |
47,262 |
|
Domestic segment |
$ |
14,993 |
|
|
$ |
15,400 |
|
$ |
47,830 |
|
|
$ |
43,293 |
|
International segment |
$ |
1,372 |
|
|
$ |
1,537 |
|
$ |
3,931 |
|
|
$ |
3,969 |
|
Enterprise comparable sales % change1 |
|
(2.3 |
) |
% |
|
12.6 |
% |
|
10.4 |
|
% |
|
9.7 |
% |
Domestic comparable sales % change1 |
|
(2.1 |
) |
% |
|
12.4 |
% |
|
11.0 |
|
% |
|
9.2 |
% |
Domestic comparable online sales % change1 |
|
(11.2 |
) |
% |
|
89.3 |
% |
|
(12.0 |
) |
% |
|
144.4 |
% |
International comparable sales % change1 |
|
(3.8 |
) |
% |
|
14.9 |
% |
|
3.3 |
|
% |
|
15.0 |
% |
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
||
GAAP operating income as a % of revenue |
|
4.9 |
|
% |
|
6.1 |
% |
|
5.9 |
|
% |
|
5.1 |
% |
Non-GAAP operating income as a % of revenue |
|
5.1 |
|
% |
|
6.9 |
% |
|
6.0 |
|
% |
|
5.8 |
% |
Diluted Earnings per Share ("EPS") |
|
|
|
|
|
|
|
|
|
|
|
|
||
GAAP diluted EPS |
$ |
2.62 |
|
|
$ |
3.10 |
|
$ |
9.84 |
|
|
$ |
6.84 |
|
Non-GAAP diluted EPS |
$ |
2.73 |
|
|
$ |
3.48 |
|
$ |
10.01 |
|
|
$ |
7.91 |
|
For GAAP to non-GAAP reconciliations of the measures referred to in the above table, please refer to the attached supporting schedule.
“Our teams showed remarkable execution and dedication to serving our customers throughout the important gift-giving season,” said Corie Barry, Best Buy CEO. “In Q4, we drove improvement in year-over-year customer satisfaction metrics across almost all areas, particularly for in-store, online and chat experiences. And even with online sales at almost 40% of our Domestic revenue, we reached our fastest holiday delivery times ever, shipping products to customer homes more than 25% faster than last year and two years ago. I am truly grateful for, and continue to be impressed by, our associates' dedication, resourcefulness and flat-out determination.”
“Q4 sales of $16.4 billion were impacted by more constrained inventory than expected, including some high-demand holiday items, and the temporary reduction in store hours in January due to Omicron-induced staffing challenges,” continued Barry. “We are deliberately investing in our future and furthering our competitive differentiation which, as expected, impacted our Q4 profitability. The biggest areas of investment were our new membership program, technology and Best Buy Health, all core to our future growth potential.”
Barry continued, “FY22 was another record year. In addition to record revenue and earnings, our leaders drove new ways of operating and our employees worked tirelessly to meet our customers’ technology needs with excellent service. From a financial perspective, our comparable sales growth was 10.4% on top of a very strong 9.7% last year, with revenue up $8.1 billion over the past two years. Compared to last year, our GAAP EPS was up 44% to $9.84 and our non-GAAP EPS was up 27% to $10.01.”
“In the past two years, our total cash provided by operating activities was $8.2 billion and we generated more than $6.5 billion in free cash flow,” said Matt Bilunas, Best Buy CFO. “In FY22, we returned $4.2 billion to shareholders in the form of share repurchases and dividends. Today, we are announcing a 26% increase in our quarterly dividend to $0.88 per share and our plan to spend approximately $1.5 billion in share repurchases in FY23.”
Financial Outlook
“In FY23, we are leveraging our position of strength by continuing to invest in our future to deliver growth over the long term. While we expect sales growth and earnings to look different in FY23, our outlook for FY25 delivers strong revenue growth and operating income rate expansion well beyond FY22,” Bilunas continued. “The two largest variables in our FY23 financial outlook on a year-over-year basis are the short-term industry decline as we lap high growth and government stimulus, and the investment in our new membership program, Best Buy Totaltech, which we believe will drive longer-term value. As we look to FY25, we expect the consumer electronics industry will return to the level we saw this past year, which is much higher than pre-pandemic levels, and that Totaltech, Best Buy Health and other initiatives will drive meaningful growth.”
In conjunction with today’s earnings release, the company is expected to host a combined earnings and investor update webcast at 8:00 a.m. Eastern Time during which members of the executive team will discuss quarterly results, share updates on strategic initiatives and provide more details on the following financial targets:
Domestic Segment Q4 FY22 Results
Domestic Revenue
Domestic revenue of $14.99 billion decreased 2.6% versus last year. The decrease was primarily driven by a comparable sales decline of 2.1% and the loss of revenue from permanent store closures in the past year.
From a merchandising perspective, the largest drivers of comparable sales growth on a weighted basis were appliances, virtual reality, home theater and headphones. These growth drivers were more than offset by declines in gaming, mobile phones, tablets and services.
Domestic online revenue of $5.91 billion decreased 11.2% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was approximately 39.4% versus 43.2% last year.
Domestic Gross Profit Rate
Domestic GAAP gross profit rate was 20.0% versus 20.9% last year. On a non-GAAP basis, the gross profit rate was 20.0% versus 20.7% last year. The lower GAAP and non-GAAP gross profit rates were primarily driven by lower services margin rates, including pressure associated with the company’s new Totaltech membership offering, which was partially offset by higher profit-sharing revenue from the company’s private label and co-branded credit card arrangement. The GAAP gross profit rate in FY21 also included the benefit of a $21 million price-fixing settlement received in relation to products purchased and sold in prior fiscal years.
Domestic Selling, General and Administrative Expenses (“SG&A”)
Domestic GAAP SG&A was $2.30 billion, or 15.3% of revenue, versus $2.15 billion, or 14.0% of revenue, last year. On a non-GAAP basis, SG&A was $2.27 billion, or 15.1% of revenue, versus $2.13 billion, or 13.8% of revenue, last year. Both GAAP and non-GAAP SG&A increased primarily due to: (1) advertising expense; (2) technology investments; (3) store and call center labor; and (4) Best Buy Health.
International Segment Q4 FY22 Results
International Revenue
International revenue of $1.4 billion decreased 10.7% versus last year. This decrease was primarily driven by the closure of Mexico in FY22 and a comparable sales decline of 3.8% in Canada. These items were partially offset by the benefit of approximately 150 basis points of favorable foreign currency exchange rates.
International Gross Profit Rate
International GAAP gross profit rate was 22.9% versus 21.6% last year. On a non-GAAP basis, the gross profit rate was 22.9% versus 20.8% last year. The higher GAAP and non-GAAP gross profit rates were primarily driven by sales mixing out of Mexico, which had a lower gross profit rate than Canada, and a larger percentage of revenue from the higher margin services category in Canada. The GAAP gross profit rate in FY21 also included a $13 million benefit associated with more favorable than expected inventory markdowns in Mexico.
International SG&A
International SG&A was $206 million, or 15.0% of revenue, versus $216 million, or 14.1% of revenue, last year. SG&A decreased primarily due to the closure of Mexico, which was partially offset by increased store payroll expense in Canada and the impact of foreign exchange rates.
Dividends and Share Repurchases
In Q4 FY22, the company returned a total of $1.94 billion to shareholders through share repurchases of $1.77 billion and dividends of $166 million. For the full year, the company returned a total of $4.2 billion to shareholders through share repurchases of $3.5 billion and dividends of $688 million.
Today, the company announced its board of directors approved a 26% increase in the regular quarterly dividend to $0.88 per share. The regular quarterly dividend will be payable on April 14, 2022, to shareholders of record as of the close of business on March 24, 2022.
In addition, the company’s board of directors approved a new $5.0 billion share repurchase authorization, replacing the existing authorization dated February 2021, which had $1.6 billion in repurchases remaining at the end of FY22.
Combined Q4 FY22 Earnings and Investor Update Webcast
Best Buy is scheduled to conduct a video webcast from 8:00 a.m. to approximately 10:30 a.m. Eastern Time on March 3, 2022. Members of the executive team will discuss the company’s quarterly results, share updates on strategic initiatives and provide forward-looking financial targets. Following the prepared remarks, the company will host a virtual Q&A session. A video webcast of the event will be available at www.investors.bestbuy.com, both live and after the event.
(1) Comparable sales include revenue from all stores that were temporarily closed or operating an enhanced curbside-only operating model as a result of COVID-19. The method of calculating comparable sales varies across the retail industry, including the treatment of store closures as a result of COVID-19. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods. On November 24, 2020, the company announced its decision to exit its operations in Mexico. As a result, all revenue from Mexico operations has been excluded from the comparable sales calculation beginning in fiscal December FY21. For additional information on comparable sales, please see our most recent Annual Report on Form 10-K, and our subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”), and available at www.investors.bestbuy.com.
(2) A reconciliation of the projected non-GAAP operating income, non-GAAP operating income rate and non-GAAP diluted EPS, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measures, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill impairments; gains and losses on investments; intangible asset amortization; certain acquisition-related costs; and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
Forward-Looking and Cautionary Statements:
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, operational investments, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” “assume,” “estimate,” “expect,” “intend,” “foresee,” “project,” “guidance,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: the duration and scope of the ongoing COVID-19 pandemic and its resurgence and the impact on demand for our products and services, levels of consumer confidence and our supply chain; the effects and duration of steps we have taken and will continue to take in response to the pandemic, including the implementation of our interim and evolving operating model; actions governments, businesses and individuals have taken and will continue to take in response to the pandemic and their impact on economic activity and consumer spending; the pace of recovery when the ongoing COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers), our expansion strategies, our focus on services as a strategic priority, our reliance on key vendors and mobile network carriers, our ability to attract and retain qualified employees, changes in market compensation rates, risks arising from statutory, regulatory and legal developments, macroeconomic pressures in the markets in which we operate, failure to effectively manage our costs, our reliance on our information technology systems, our ability to prevent or effectively respond to a privacy or security breach, our ability to effectively manage strategic ventures, alliances or acquisitions, our dependence on cash flows and net earnings generated during the fourth fiscal quarter, susceptibility of our products to technological advancements, product life cycle preferences and changes in consumer preferences, economic or regulatory developments that might affect our ability to provide attractive promotional financing, interruptions and other supply chain issues, catastrophic events, health crises, pandemics, our ability to maintain positive brand perception and recognition, product safety and quality concerns, changes to labor or employment laws or regulations, our ability to effectively manage our real estate portfolio, constraints in the capital markets or our vendor credit terms, changes in our credit ratings, any material disruption in our relationship with or the services of third-party vendors, risks related to our exclusive brand products and risks associated with vendors that source products outside of the U.S., including trade restrictions or changes in the costs of imports (including existing or new tariffs or duties and changes in the amount of any such tariffs or duties) and risks arising from our international activities.
A further list and description of these risks, uncertainties and other matters can be found in the company’s annual report and other reports filed from time to time with the SEC, including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on March 19, 2021 and its Quarterly Reports on Form 10-Q filed with the SEC. Best Buy cautions that the foregoing list of important factors is not complete, and any forward-looking statements speak only as of the date they are made, and Best Buy assumes no obligation to update any forward-looking statement that it may make.
BEST BUY CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (Unaudited and subject to reclassification) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||||
Revenue |
$ |
16,365 |
|
|
|
$ |
16,937 |
|
|
|
$ |
51,761 |
|
|
|
$ |
47,262 |
|
|
Cost of sales |
|
13,052 |
|
|
|
|
13,394 |
|
|
|
|
40,121 |
|
|
|
|
36,689 |
|
|
Gross profit |
|
3,313 |
|
|
|
|
3,543 |
|
|
|
|
11,640 |
|
|
|
|
10,573 |
|
|
Gross profit % |
|
20.2 |
|
% |
|
|
20.9 |
|
% |
|
|
22.5 |
|
% |
|
|
22.4 |
|
% |
Selling, general and administrative expenses |
2,505 |
|
|
|
|
2,368 |
|
|
|
|
8,635 |
|
|
|
|
7,928 |
|
|
|
SG&A % |
|
15.3 |
|
% |
|
|
14.0 |
|
% |
|
|
16.7 |
|
% |
|
|
16.8 |
|
% |
Restructuring charges |
|
5 |
|
|
|
|
142 |
|
|
|
|
(34 |
) |
|
|
|
254 |
|
|
Operating income |
|
803 |
|
|
|
|
1,033 |
|
|
|
|
3,039 |
|
|
|
|
2,391 |
|
|
Operating income % |
|
4.9 |
|
% |
|
|
6.1 |
|
% |
|
|
5.9 |
|
% |
|
|
5.1 |
|
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of investments |
|
- |
|
|
|
|
1 |
|
|
|
|
- |
|
|
|
|
1 |
|
|
Investment income and other |
|
3 |
|
|
|
|
18 |
|
|
|
|
10 |
|
|
|
|
37 |
|
|
Interest expense |
|
(6 |
) |
|
|
|
(9 |
) |
|
|
|
(25 |
) |
|
|
|
(52 |
) |
|
Earnings before income tax expense |
|
800 |
|
|
|
|
1,043 |
|
|
|
|
3,024 |
|
|
|
|
2,377 |
|
|
Income tax expense |
|
172 |
|
|
|
|
227 |
|
|
|
|
574 |
|
|
|
|
579 |
|
|
Effective tax rate |
|
21.4 |
|
% |
|
|
21.6 |
|
% |
|
|
19.0 |
|
% |
|
|
24.3 |
|
% |
Equity in income (loss) of affiliates |
|
(2 |
) |
|
|
|
- |
|
|
|
|
4 |
|
|
|
|
- |
|
|
Net earnings |
$ |
626 |
|
|
|
$ |
816 |
|
|
|
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.65 |
|
|
|
$ |
3.15 |
|
|
|
$ |
9.94 |
|
|
|
$ |
6.93 |
|
|
Diluted earnings per share |
$ |
2.62 |
|
|
|
$ |
3.10 |
|
|
|
$ |
9.84 |
|
|
|
$ |
6.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
236.6 |
|
|
|
|
259.4 |
|
|
|
|
246.8 |
|
|
|
|
259.6 |
|
|
Diluted |
|
239.0 |
|
|
|
|
263.2 |
|
|
|
|
249.3 |
|
|
|
|
263.0 |
|
|
BEST BUY CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) (Unaudited and subject to reclassification) |
|||||
|
|
|
|
|
|
|
January 29, 2022 |
January 30, 2021 |
|||
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
2,936 |
$ |
5,494 |
|
Receivables, net |
|
1,042 |
|
1,061 |
|
Merchandise inventories |
|
5,965 |
|
5,612 |
|
Other current assets |
|
596 |
|
373 |
|
Total current assets |
|
10,539 |
|
12,540 |
|
Property and equipment, net |
|
2,250 |
|
2,260 |
|
Operating lease assets |
|
2,654 |
|
2,612 |
|
Goodwill |
|
1,384 |
|
986 |
|
Other assets |
|
677 |
|
669 |
|
Total assets |
$ |
17,504 |
$ |
19,067 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
6,803 |
$ |
6,979 |
|
Unredeemed gift card liabilities |
|
316 |
|
317 |
|
Deferred revenue |
|
1,103 |
|
711 |
|
Accrued compensation and related expenses |
|
845 |
|
725 |
|
Accrued liabilities |
|
946 |
|
972 |
|
Short-term debt |
|
- |
|
110 |
|
Current portion of operating lease liabilities |
|
648 |
|
693 |
|
Current portion of long-term debt |
|
13 |
|
14 |
|
Total current liabilities |
|
10,674 |
|
10,521 |
|
Long-term operating lease liabilities |
|
2,061 |
|
2,012 |
|
Long-term liabilities |
|
533 |
|
694 |
|
Long-term debt |
|
1,216 |
|
1,253 |
|
Equity |
|
3,020 |
|
4,587 |
|
Total liabilities and equity |
$ |
17,504 |
$ |
19,067 |
BEST BUY CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) (Unaudited and subject to reclassification) |
|||||||||
|
|
|
|
|
|
|
|
||
|
Twelve Months Ended |
||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Operating activities |
|
|
|
|
|
|
|
||
Net earnings |
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
Adjustments to reconcile net earnings to total cash provided by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
869 |
|
|
|
|
839 |
|
|
Restructuring charges |
|
(34 |
) |
|
|
|
254 |
|
|
Stock-based compensation |
|
141 |
|
|
|
|
135 |
|
|
Deferred income taxes |
|
14 |
|
|
|
|
(36 |
) |
|
Other, net |
|
11 |
|
|
|
|
3 |
|
|
Changes in operating assets and liabilities, net of acquired assets and liabilities: |
|
|
|
|
|
|
|
||
Receivables |
|
17 |
|
|
|
|
73 |
|
|
Merchandise inventories |
|
(328 |
) |
|
|
|
(435 |
) |
|
Other assets |
|
(14 |
) |
|
|
|
(51 |
) |
|
Accounts payable |
|
(201 |
) |
|
|
|
1,676 |
|
|
Income taxes |
|
(156 |
) |
|
|
|
173 |
|
|
Other liabilities |
|
479 |
|
|
|
|
498 |
|
|
Total cash provided by operating activities |
|
3,252 |
|
|
|
|
4,927 |
|
|
|
|
|
|
|
|
|
|
||
Investing activities |
|
|
|
|
|
|
|
||
Additions to property and equipment |
|
(737 |
) |
|
|
|
(713 |
) |
|
Purchases of investments |
|
(233 |
) |
|
|
|
(620 |
) |
|
Sales of investments |
|
66 |
|
|
|
|
546 |
|
|
Acquisitions, net of cash acquired |
|
(468 |
) |
|
|
|
- |
|
|
Other, net |
|
- |
|
|
|
|
(1 |
) |
|
Total cash used in investing activities |
|
(1,372 |
) |
|
|
|
(788 |
) |
|
|
|
|
|
|
|
|
|
||
Financing activities |
|
|
|
|
|
|
|
||
Repurchase of common stock |
|
(3,502 |
) |
|
|
|
(312 |
) |
|
Issuance of common stock |
|
29 |
|
|
|
|
28 |
|
|
Dividends paid |
|
(688 |
) |
|
|
|
(568 |
) |
|
Borrowings of debt |
|
- |
|
|
|
|
1,892 |
|
|
Repayments of debt |
|
(133 |
) |
|
|
|
(1,916 |
) |
|
Other, net |
|
(3 |
) |
|
|
|
- |
|
|
Total cash used in financing activities |
|
(4,297 |
) |
|
|
|
(876 |
) |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
(3 |
) |
|
|
|
7 |
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(2,420 |
) |
|
|
|
3,270 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
5,625 |
|
|
|
|
2,355 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,205 |
|
|
|
$ |
5,625 |
|
|
BEST BUY CO., INC. SEGMENT INFORMATION ($ in millions) (Unaudited and subject to reclassification) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
Domestic Segment Results |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||
Revenue |
$ |
14,993 |
|
|
|
$ |
15,400 |
|
|
$ |
47,830 |
|
|
|
$ |
43,293 |
|
Comparable sales % change |
|
(2.1 |
) |
% |
|
|
12.4 |
% |
|
|
11.0 |
|
% |
|
|
9.2 |
% |
Comparable online sales % change |
|
(11.2 |
) |
% |
|
|
89.3 |
% |
|
|
(12.0 |
) |
% |
|
|
144.4 |
% |
Gross profit |
$ |
2,999 |
|
|
|
$ |
3,211 |
|
|
$ |
10,702 |
|
|
|
$ |
9,720 |
|
Gross profit as a % of revenue |
|
20.0 |
|
% |
|
|
20.9 |
% |
|
|
22.4 |
|
% |
|
|
22.5 |
% |
SG&A |
$ |
2,299 |
|
|
|
$ |
2,152 |
|
|
$ |
7,946 |
|
|
|
$ |
7,239 |
|
SG&A as a % of revenue |
|
15.3 |
|
% |
|
|
14.0 |
% |
|
|
16.6 |
|
% |
|
|
16.7 |
% |
Operating income |
$ |
695 |
|
|
|
$ |
971 |
|
|
$ |
2,795 |
|
|
|
$ |
2,348 |
|
Operating income as a % of revenue |
|
4.6 |
|
% |
|
|
6.3 |
% |
|
|
5.8 |
|
% |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Domestic Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Gross profit |
$ |
2,999 |
|
|
|
$ |
3,190 |
|
|
$ |
10,702 |
|
|
|
$ |
9,699 |
|
Gross profit as a % of revenue |
|
20.0 |
|
% |
|
|
20.7 |
% |
|
|
22.4 |
|
% |
|
|
22.4 |
% |
SG&A |
$ |
2,271 |
|
|
|
$ |
2,132 |
|
|
$ |
7,853 |
|
|
|
$ |
7,159 |
|
SG&A as a % of revenue |
|
15.1 |
|
% |
|
|
13.8 |
% |
|
|
16.4 |
|
% |
|
|
16.5 |
% |
Operating income |
$ |
728 |
|
|
|
$ |
1,058 |
|
|
$ |
2,849 |
|
|
|
$ |
2,540 |
|
Operating income as a % of revenue |
|
4.9 |
|
% |
|
|
6.9 |
% |
|
|
6.0 |
|
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
International Segment Results |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||
Revenue |
$ |
1,372 |
|
|
|
$ |
1,537 |
|
|
$ |
3,931 |
|
|
|
$ |
3,969 |
|
Comparable sales % change |
|
(3.8 |
) |
% |
|
|
14.9 |
% |
|
|
3.3 |
|
% |
|
|
15.0 |
% |
Gross profit |
$ |
314 |
|
|
|
$ |
332 |
|
|
$ |
938 |
|
|
|
$ |
853 |
|
Gross profit as a % of revenue |
|
22.9 |
|
% |
|
|
21.6 |
% |
|
|
23.9 |
|
% |
|
|
21.5 |
% |
SG&A |
$ |
206 |
|
|
|
$ |
216 |
|
|
$ |
689 |
|
|
|
$ |
689 |
|
SG&A as a % of revenue |
|
15.0 |
|
% |
|
|
14.1 |
% |
|
|
17.5 |
|
% |
|
|
17.4 |
% |
Operating income |
$ |
108 |
|
|
|
$ |
62 |
|
|
$ |
244 |
|
|
|
$ |
43 |
|
Operating income as a % of revenue |
|
7.9 |
|
% |
|
|
4.0 |
% |
|
|
6.2 |
|
% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
International Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
$ |
314 |
|
|
|
$ |
319 |
|
|
$ |
932 |
|
|
|
$ |
876 |
|
Gross profit as a % of revenue |
|
22.9 |
|
% |
|
|
20.8 |
% |
|
|
23.7 |
|
% |
|
|
22.1 |
% |
SG&A |
$ |
206 |
|
|
|
$ |
216 |
|
|
$ |
689 |
|
|
|
$ |
689 |
|
SG&A as a % of revenue |
|
15.0 |
|
% |
|
|
14.1 |
% |
|
|
17.5 |
|
% |
|
|
17.4 |
% |
Operating income |
$ |
108 |
|
|
|
$ |
103 |
|
|
$ |
243 |
|
|
|
$ |
187 |
|
Operating income as a % of revenue |
|
7.9 |
|
% |
|
|
6.7 |
% |
|
|
6.2 |
|
% |
|
|
4.7 |
% |
(1) For GAAP to non-GAAP reconciliations, please refer to the attached supporting schedule titled Reconciliation of Non-GAAP Financial Measures. |
BEST BUY CO., INC. REVENUE CATEGORY SUMMARY (Unaudited and subject to reclassification) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue Mix |
|
Comparable Sales |
||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||
Domestic Segment |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Computing and Mobile Phones |
42 |
% |
|
43 |
% |
|
(6.0 |
) |
% |
|
16.4 |
|
% |
Consumer Electronics |
34 |
% |
|
32 |
% |
|
2.9 |
|
% |
|
(1.3 |
) |
% |
Appliances |
13 |
% |
|
12 |
% |
|
7.9 |
|
% |
|
36.0 |
|
% |
Entertainment |
8 |
% |
|
9 |
% |
|
(9.5 |
) |
% |
|
31.4 |
|
% |
Services |
3 |
% |
|
4 |
% |
|
(14.8 |
) |
% |
|
4.9 |
|
% |
Other |
- |
% |
|
- |
% |
|
N/A |
|
|
|
N/A |
|
|
Total |
100 |
% |
|
100 |
% |
|
(2.1 |
) |
% |
|
12.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue Mix |
|
Comparable Sales |
||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||
International Segment |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Computing and Mobile Phones |
40 |
% |
|
42 |
% |
|
(6.0 |
) |
% |
|
20.5 |
|
% |
Consumer Electronics |
35 |
% |
|
34 |
% |
|
(3.8 |
) |
% |
|
2.4 |
|
% |
Appliances |
9 |
% |
|
9 |
% |
|
(1.2 |
) |
% |
|
26.8 |
|
% |
Entertainment |
10 |
% |
|
10 |
% |
|
(6.9 |
) |
% |
|
59.5 |
|
% |
Services |
4 |
% |
|
3 |
% |
|
23.0 |
|
% |
|
(18.0 |
) |
% |
Other |
2 |
% |
|
2 |
% |
|
2.8 |
|
% |
|
6.5 |
|
% |
Total |
100 |
% |
|
100 |
% |
|
(3.8 |
) |
% |
|
14.9 |
|
% |
BEST BUY CO., INC. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
($ in millions, except per share amounts) |
(Unaudited and subject to reclassification) |
|
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. The company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Generally, presented non-GAAP financial measures include adjustments for items such as restructuring charges, price-fixing settlements, goodwill impairments, gains and losses on investments, intangible asset amortization, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this earnings release and the company’s financial statements and other publicly filed reports. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies. |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
|||||||||||||||||
Gross profit |
$ |
2,999 |
|
|
|
$ |
314 |
|
|
$ |
3,313 |
|
|
|
$ |
3,211 |
|
|
|
$ |
332 |
|
|
|
$ |
3,543 |
|
|
% of revenue |
|
20.0 |
|
% |
|
|
22.9 |
% |
|
|
20.2 |
|
% |
|
|
20.9 |
|
% |
|
|
21.6 |
|
% |
|
|
20.9 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(13 |
) |
|
|
|
(13 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
|
(21 |
) |
|
Non-GAAP gross profit |
$ |
2,999 |
|
|
|
$ |
314 |
|
|
$ |
3,313 |
|
|
|
$ |
3,190 |
|
|
|
$ |
319 |
|
|
|
$ |
3,509 |
|
|
% of revenue |
|
20.0 |
|
% |
|
|
22.9 |
% |
|
|
20.2 |
|
% |
|
|
20.7 |
|
% |
|
|
20.8 |
|
% |
|
|
20.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SG&A |
$ |
2,299 |
|
|
|
$ |
206 |
|
|
$ |
2,505 |
|
|
|
$ |
2,152 |
|
|
|
$ |
216 |
|
|
|
$ |
2,368 |
|
|
% of revenue |
|
15.3 |
|
% |
|
|
15.0 |
% |
|
|
15.3 |
|
% |
|
|
14.0 |
|
% |
|
|
14.1 |
|
% |
|
|
14.0 |
|
% |
Intangible asset amortization3 |
|
(22 |
) |
|
|
|
- |
|
|
|
(22 |
) |
|
|
|
(20 |
) |
|
|
|
- |
|
|
|
|
(20 |
) |
|
Acquisition-related transaction costs3 |
|
(6 |
) |
|
|
|
- |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Non-GAAP SG&A |
$ |
2,271 |
|
|
|
$ |
206 |
|
|
$ |
2,477 |
|
|
|
$ |
2,132 |
|
|
|
$ |
216 |
|
|
|
$ |
2,348 |
|
|
% of revenue |
|
15.1 |
|
% |
|
|
15.0 |
% |
|
|
15.1 |
|
% |
|
|
13.8 |
|
% |
|
|
14.1 |
|
% |
|
|
13.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
$ |
695 |
|
|
|
$ |
108 |
|
|
$ |
803 |
|
|
|
$ |
971 |
|
|
|
$ |
62 |
|
|
|
$ |
1,033 |
|
|
% of revenue |
|
4.6 |
|
% |
|
|
7.9 |
% |
|
|
4.9 |
|
% |
|
|
6.3 |
|
% |
|
|
4.0 |
|
% |
|
|
6.1 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(13 |
) |
|
|
|
(13 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
|
(21 |
) |
|
Intangible asset amortization3 |
|
22 |
|
|
|
|
- |
|
|
|
22 |
|
|
|
|
20 |
|
|
|
|
- |
|
|
|
|
20 |
|
|
Acquisition-related transaction costs3 |
|
6 |
|
|
|
|
- |
|
|
|
6 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
5 |
|
|
|
|
- |
|
|
|
5 |
|
|
|
|
88 |
|
|
|
|
54 |
|
|
|
|
142 |
|
|
Non-GAAP operating income |
$ |
728 |
|
|
|
$ |
108 |
|
|
$ |
836 |
|
|
|
$ |
1,058 |
|
|
|
$ |
103 |
|
|
|
$ |
1,161 |
|
|
% of revenue |
|
4.9 |
|
% |
|
|
7.9 |
% |
|
|
5.1 |
|
% |
|
|
6.9 |
|
% |
|
|
6.7 |
|
% |
|
|
6.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective tax rate |
|
|
|
|
|
|
|
|
|
21.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
21.6 |
|
% |
|||
Price-fixing settlement2 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.2 |
|
% |
|||
Intangible asset amortization3 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.1 |
) |
% |
|||
Restructuring charges4 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.8 |
) |
% |
|||
Gain on investments, net |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|||
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
21.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
21.0 |
|
% |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|||||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
$ |
3.10 |
|
|
||
Restructuring - inventory markdowns1 |
$ |
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
(13 |
) |
|
|
$ |
(13 |
) |
|
|
|
(0.05 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(21 |
) |
|
|
|
(15 |
) |
|
|
|
(0.06 |
) |
|
Intangible asset amortization3 |
|
22 |
|
|
|
18 |
|
|
|
0.08 |
|
|
|
20 |
|
|
|
|
15 |
|
|
|
|
0.06 |
|
|
Acquisition-related transaction costs3 |
|
6 |
|
|
|
5 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
5 |
|
|
|
3 |
|
|
|
0.01 |
|
|
|
142 |
|
|
|
|
121 |
|
|
|
|
0.46 |
|
|
Gain on investments, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
|
(9 |
) |
|
|
|
(0.03 |
) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
2.73 |
|
|
|
|
|
|
|
|
|
|
$ |
3.48 |
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
|||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
|||||||||||||||||
Gross profit |
$ |
10,702 |
|
|
|
$ |
938 |
|
|
|
$ |
11,640 |
|
|
|
$ |
9,720 |
|
|
|
$ |
853 |
|
|
$ |
10,573 |
|
|
% of revenue |
|
22.4 |
|
% |
|
|
23.9 |
|
% |
|
|
22.5 |
|
% |
|
|
22.5 |
|
% |
|
|
21.5 |
% |
|
|
22.4 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
(6 |
) |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
23 |
|
|
|
23 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
(21 |
) |
|
Non-GAAP gross profit |
$ |
10,702 |
|
|
|
$ |
932 |
|
|
|
$ |
11,634 |
|
|
|
$ |
9,699 |
|
|
|
$ |
876 |
|
|
$ |
10,575 |
|
|
% of revenue |
|
22.4 |
|
% |
|
|
23.7 |
|
% |
|
|
22.5 |
|
% |
|
|
22.4 |
|
% |
|
|
22.1 |
% |
|
|
22.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SG&A |
$ |
7,946 |
|
|
|
$ |
689 |
|
|
|
$ |
8,635 |
|
|
|
$ |
7,239 |
|
|
|
$ |
689 |
|
|
$ |
7,928 |
|
|
% of revenue |
|
16.6 |
|
% |
|
|
17.5 |
|
% |
|
|
16.7 |
|
% |
|
|
16.7 |
|
% |
|
|
17.4 |
% |
|
|
16.8 |
|
% |
Intangible asset amortization3 |
|
(82 |
) |
|
|
|
- |
|
|
|
|
(82 |
) |
|
|
|
(80 |
) |
|
|
|
- |
|
|
|
(80 |
) |
|
Acquisition-related transaction costs3 |
|
(11 |
) |
|
|
|
- |
|
|
|
|
(11 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Non-GAAP SG&A |
$ |
7,853 |
|
|
|
$ |
689 |
|
|
|
$ |
8,542 |
|
|
|
$ |
7,159 |
|
|
|
$ |
689 |
|
|
$ |
7,848 |
|
|
% of revenue |
|
16.4 |
|
% |
|
|
17.5 |
|
% |
|
|
16.5 |
|
% |
|
|
16.5 |
|
% |
|
|
17.4 |
% |
|
|
16.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
$ |
2,795 |
|
|
|
$ |
244 |
|
|
|
$ |
3,039 |
|
|
|
$ |
2,348 |
|
|
|
$ |
43 |
|
|
$ |
2,391 |
|
|
% of revenue |
|
5.8 |
|
% |
|
|
6.2 |
|
% |
|
|
5.9 |
|
% |
|
|
5.4 |
|
% |
|
|
1.1 |
% |
|
|
5.1 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
(6 |
) |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
23 |
|
|
|
23 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
(21 |
) |
|
Intangible asset amortization3 |
|
82 |
|
|
|
|
- |
|
|
|
|
82 |
|
|
|
|
80 |
|
|
|
|
- |
|
|
|
80 |
|
|
Acquisition-related transaction costs3 |
|
11 |
|
|
|
|
- |
|
|
|
|
11 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Restructuring charges4 |
|
(39 |
) |
|
|
|
5 |
|
|
|
|
(34 |
) |
|
|
|
133 |
|
|
|
|
121 |
|
|
|
254 |
|
|
Non-GAAP operating income |
$ |
2,849 |
|
|
|
$ |
243 |
|
|
|
$ |
3,092 |
|
|
|
$ |
2,540 |
|
|
|
$ |
187 |
|
|
$ |
2,727 |
|
|
% of revenue |
|
6.0 |
|
% |
|
|
6.2 |
|
% |
|
|
6.0 |
|
% |
|
|
5.9 |
|
% |
|
|
4.7 |
% |
|
|
5.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective tax rate |
|
|
|
|
|
|
|
|
|
19.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
24.3 |
|
% |
|||
Price-fixing settlement2 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.2 |
|
% |
|||
Intangible asset amortization3 |
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.6 |
) |
% |
|||
Restructuring charges4 |
|
|
|
|
|
|
|
|
|
(0.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
(1.0 |
) |
% |
|||
Gain on investments, net |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|||
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
19.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
23.0 |
|
% |
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||||||||||||||||||
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
||||||||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
9.84 |
|
|
|
|
|
|
|
|
|
|
|
$ |
6.84 |
|
|
||||
Restructuring - inventory markdowns1 |
$ |
(6 |
) |
|
|
$ |
(6 |
) |
|
|
|
(0.02 |
) |
|
|
$ |
23 |
|
|
|
$ |
23 |
|
|
|
|
0.09 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
(15 |
) |
|
|
|
(0.06 |
) |
|
Intangible asset amortization3 |
|
82 |
|
|
|
|
62 |
|
|
|
|
0.25 |
|
|
|
|
80 |
|
|
|
|
60 |
|
|
|
|
0.23 |
|
|
Acquisition-related transaction costs3 |
|
11 |
|
|
|
|
10 |
|
|
|
|
0.04 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
(34 |
) |
|
|
|
(24 |
) |
|
|
|
(0.10 |
) |
|
|
|
254 |
|
|
|
|
222 |
|
|
|
|
0.84 |
|
|
Gain on investments, net |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(12 |
) |
|
|
|
(9 |
) |
|
|
|
(0.03 |
) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
10.01 |
|
|
|
|
|
|
|
|
|
|
|
$ |
7.91 |
|
|
(1) |
Represents inventory markdown adjustments recorded within cost of sales associated with the decision to exit operations in Mexico. |
|
(2) |
Represents a price-fixing litigation settlement received in relation to products purchased and sold in prior fiscal years. |
|
(3) |
Represents charges associated with acquisitions, including: (1) the non-cash amortization of definite-lived intangible assets, including customer relationships, tradenames and developed technology; and (2) acquisition-related transaction and due diligence costs, primarily comprised of professional fees. |
|
(4) |
Represents charges and subsequent adjustments primarily related to actions taken in the Domestic segment to better align the company’s organizational structure with its strategic focus and the decision to exit operations in Mexico in the International segment. |
|
(5) |
The non-GAAP adjustments primarily relate to the U.S. and Mexico. As such, the income tax charge is generally calculated using the statutory tax rate of 24.5% for U.S. non-GAAP items for all periods presented. There is no income tax charge for Mexico non-GAAP items and a minimal amount of U.S. non-GAAP items, as there was no tax benefit recognized on these expenses in the calculation of GAAP income tax expense. |
Return on Assets and Non-GAAP Return on Investment |
|
The tables below provide calculations of return on assets ("ROA") (GAAP financial measure) and non-GAAP return on investment (“ROI”) (non-GAAP financial measure) for the periods presented. The company believes ROA is the most directly comparable financial measure to ROI. Non-GAAP ROI is defined as non-GAAP adjusted operating income after tax divided by average invested operating assets. All periods presented below apply this methodology consistently. The company believes non-GAAP ROI is a meaningful metric for investors to evaluate capital efficiency because it measures how key assets are deployed by adjusting operating income and total assets for the items noted below. This method of determining non-GAAP ROI may differ from other companies' methods and therefore may not be comparable to those used by other companies. |
Return on Assets ("ROA") |
January 29, 20221 |
|
January 30, 20211 |
||||||
Net earnings |
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
Total assets |
|
18,743 |
|
|
|
|
18,408 |
|
|
ROA |
|
13.1 |
|
% |
|
|
9.8 |
|
% |
|
|
|
|
|
|
|
|
||
Non-GAAP Return on Investment ("ROI") |
January 29, 20221 |
|
January 30, 20211 |
||||||
Numerator |
|
|
|
|
|
|
|
||
Operating income |
$ |
3,039 |
|
|
|
$ |
2,391 |
|
|
Add: Non-GAAP operating income adjustments2 |
|
53 |
|
|
|
|
336 |
|
|
Add: Operating lease interest3 |
|
108 |
|
|
|
|
111 |
|
|
Less: Income taxes4 |
|
(784 |
) |
|
|
|
(695 |
) |
|
Add: Depreciation |
|
787 |
|
|
|
|
759 |
|
|
Add: Operating lease amortization5 |
|
657 |
|
|
|
|
665 |
|
|
Adjusted operating income after tax |
$ |
3,860 |
|
|
|
$ |
3,567 |
|
|
|
|
|
|
|
|
|
|
||
Denominator |
|
|
|
|
|
|
|
||
Total assets |
$ |
18,743 |
|
|
|
$ |
18,408 |
|
|
Less: Excess cash6 |
|
(3,055 |
) |
|
|
|
(4,071 |
) |
|
Add: Accumulated depreciation and amortization7 |
|
6,957 |
|
|
|
|
7,114 |
|
|
Less: Adjusted current liabilities8 |
|
(10,122 |
) |
|
|
|
(9,189 |
) |
|
Average invested operating assets |
$ |
12,523 |
|
|
|
$ |
12,262 |
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP ROI |
|
30.8 |
|
% |
|
|
29.1 |
|
% |
(1) | Income statement accounts represent the activity for the trailing 12 months ended as of each of the balance sheet dates. Balance sheet accounts represent the average account balances for the trailing 12 months ended as of each of the balance sheet dates. |
|
(2) | Non-GAAP operating income adjustments include continuing operations adjustments for restructuring charges, intangible asset amortization, acquisition-related transaction costs and price-fixing settlements. Additional details regarding these adjustments are included in the Reconciliation of Non-GAAP Financial Measures schedule in this earnings release. |
|
(3) | Operating lease interest represents the add-back to operating income to approximate the total interest expense that the company would incur if its operating leases were owned and financed by debt. The add-back is approximated by multiplying average operating lease assets by 4%, which approximates the interest rate on the company’s operating lease liabilities. |
|
(4) | Income taxes are approximated by using a blended statutory rate at the Enterprise level based on statutory rates from the countries in which the company does business, which primarily consists of the U.S. with a statutory rate of 24.5% for the periods presented. |
|
(5) | Operating lease amortization represents operating lease cost less operating lease interest. Operating lease cost includes short-term leases, which are immaterial, and excludes variable lease costs as these costs are not included in the operating lease asset balance. |
|
(6) | Excess cash represents the amount of cash, cash equivalents and short-term investments greater than $1 billion, which approximates the amount of cash the company believes is necessary to run the business and may fluctuate over time. |
|
(7) | Accumulated depreciation and amortization represents accumulated depreciation related to property and equipment and accumulated amortization related to definite-lived intangible assets. |
|
(8) | Adjusted current liabilities represent total current liabilities less short-term debt and the current portions of operating lease liabilities and long-term debt. |
Free Cash Flow |
($ in millions) |
(Unaudited and subject to reclassification) |
|
The table below provides a reconciliation of cash provided by operating activities (GAAP financial measure) to free cash flow (non-GAAP financial measure) for the periods presented. The company believes free cash flow, which measures our ability to generate additional cash from our ongoing business operations, is a relevant supplementary measure for investors in evaluating the company’s financial performance. In addition, it is one factor used by the company in determining the amount of cash available for acquisitions, dividends, share repurchases and other discretionary investments. This method of determining free cash flow may differ from other companies' methods and therefore may not be comparable to those used by other companies. |
|
Twelve Months Ended |
||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Cash provided by operating activities |
$ |
3,252 |
|
|
|
$ |
4,927 |
|
|
Less: Additions to property and equipment, net |
|
(737 |
) |
|
|
|
(713 |
) |
|
Free cash flow |
$ |
2,515 |
|
|
|
$ |
4,214 |
|
|
Сопоставимые продажи в 4 квартале снизились на 2,3% По сравнению с ростом на 12,6% в 4 квартале 21 финансового года
Разводненная прибыль на акцию по ОПБУ за 4 квартал составила 2,62 доллара США
Разводненная прибыль на акцию в 4 квартале без учета GAAP составила 2,73 доллара США
Операционная прибыль по GAAP за 22 финансовый год составила 5,9%
Показатель операционной прибыли, не относящийся к GAAP, за 22 финансовый год составил 6,0%
Увеличил квартальные дивиденды на 26% до 0,88 доллара на акцию
Ожидается, что разводненная прибыль на акцию без учета GAAP в 23 финансовом году составит от 8,85 до 9,15 долл.
Ожидается, что выручка в 25 финансовом году составит от 53,5 млрд до 56,5 млрд долларов
Ожидается, что уровень операционной прибыли без учета GAAP в 25 финансовом году составит от 6,3% до 6,8%
МИННЕАПОЛИС - (BUSINESS WIRE) - Best Buy Co., Inc. (NYSE: BBY) сегодня объявила результаты за 13-недельный четвертый квартал, закончившийся 29 января 2022 года (“4 квартал 22 финансового года”), по сравнению с 13-недельным четвертым кварталом, закончившимся 30 января 2021 года (“4 квартал 21 финансового года”).
|
Q4 FY22 |
Q4 FY21 |
FY22 |
FY21 |
||||||||||
Revenue ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
||
Enterprise |
$ |
16,365 |
|
|
$ |
16,937 |
|
$ |
51,761 |
|
|
$ |
47,262 |
|
Domestic segment |
$ |
14,993 |
|
|
$ |
15,400 |
|
$ |
47,830 |
|
|
$ |
43,293 |
|
International segment |
$ |
1,372 |
|
|
$ |
1,537 |
|
$ |
3,931 |
|
|
$ |
3,969 |
|
Enterprise comparable sales % change1 |
|
(2.3 |
) |
% |
|
12.6 |
% |
|
10.4 |
|
% |
|
9.7 |
% |
Domestic comparable sales % change1 |
|
(2.1 |
) |
% |
|
12.4 |
% |
|
11.0 |
|
% |
|
9.2 |
% |
Domestic comparable online sales % change1 |
|
(11.2 |
) |
% |
|
89.3 |
% |
|
(12.0 |
) |
% |
|
144.4 |
% |
International comparable sales % change1 |
|
(3.8 |
) |
% |
|
14.9 |
% |
|
3.3 |
|
% |
|
15.0 |
% |
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
||
GAAP operating income as a % of revenue |
|
4.9 |
|
% |
|
6.1 |
% |
|
5.9 |
|
% |
|
5.1 |
% |
Non-GAAP operating income as a % of revenue |
|
5.1 |
|
% |
|
6.9 |
% |
|
6.0 |
|
% |
|
5.8 |
% |
Diluted Earnings per Share ("EPS") |
|
|
|
|
|
|
|
|
|
|
|
|
||
GAAP diluted EPS |
$ |
2.62 |
|
|
$ |
3.10 |
|
$ |
9.84 |
|
|
$ |
6.84 |
|
Non-GAAP diluted EPS |
$ |
2.73 |
|
|
$ |
3.48 |
|
$ |
10.01 |
|
|
$ |
7.91 |
|
Для сверки показателей, указанных в приведенной выше таблице, с показателями, не относящимися к GAAP, пожалуйста, обратитесь к прилагаемому вспомогательному графику.
“Наши команды продемонстрировали замечательную исполнительность и преданность делу обслуживания наших клиентов на протяжении всего важного сезона подарков”, - сказал Кори Барри, генеральный директор Best Buy. “В 4 квартале мы добились улучшения показателей удовлетворенности клиентов по сравнению с предыдущим годом практически во всех областях, особенно в магазинах, онлайн и в чате. И даже при том, что онлайн-продажи составляют почти 40% нашего внутреннего дохода, мы достигли самых быстрых сроков доставки в праздничные дни за всю историю, доставляя товары в дома клиентов более чем на 25% быстрее, чем в прошлом году и два года назад. Я искренне благодарен и продолжаю восхищаться самоотверженностью, находчивостью и решимостью наших сотрудников".
“На продажи в 4 квартале в размере 16,4 миллиарда долларов повлияли более ограниченные запасы, чем ожидалось, в том числе некоторые товары для праздников с высоким спросом, а также временное сокращение часов работы магазинов в январе из-за кадровых проблем, вызванных Omicron”, - продолжил Барри. “Мы сознательно инвестируем в наше будущее и продвигаем нашу конкурентную дифференциацию, которая, как и ожидалось, повлияла на нашу прибыльность в 4 квартале. Самыми крупными направлениями инвестиций были наша новая программа членства, технологии и Best Buy Health, которые являются основой нашего будущего потенциала роста ”.
Барри продолжил: “22-й финансовый год стал еще одним рекордным годом. В дополнение к рекордным доходам и прибылям наши лидеры внедрили новые методы работы, а наши сотрудники неустанно работали, чтобы удовлетворить технологические потребности наших клиентов с помощью превосходного сервиса. С финансовой точки зрения наш сопоставимый рост продаж составил 10,4% по сравнению с очень высокими 9,7% в прошлом году, а выручка за последние два года выросла на 8,1 миллиарда долларов. По сравнению с прошлым годом наша прибыль на акцию по GAAP выросла на 44% до 9,84 доллара США, а наша прибыль на акцию без учета GAAP выросла на 27% до 10,01 доллара США”.
“За последние два года наш общий объем денежных средств, полученных от операционной деятельности, составил 8,2 миллиарда долларов, и мы получили более 6,5 миллиарда долларов свободного денежного потока”, - сказал Мэтт Билунас, финансовый директор Best Buy. “В 22 финансовом году мы вернули акционерам 4,2 миллиарда долларов в виде выкупа акций и дивидендов. Сегодня мы объявляем об увеличении наших квартальных дивидендов на 26% до 0,88 доллара на акцию и планируем потратить около 1,5 миллиарда долларов на выкуп акций в 23 финансовом году”.
Финансовые перспективы
“В 23 финансовом году мы используем наши сильные позиции, продолжая инвестировать в наше будущее, чтобы обеспечить рост в долгосрочной перспективе. Хотя мы ожидаем, что рост продаж и прибыли в 23 финансовом году будут выглядеть по-другому, наш прогноз на 25 финансовый год предусматривает значительный рост выручки и увеличение уровня операционной прибыли значительно после 22 финансового года”, - продолжил Билунас. “Две крупнейшие переменные в нашем финансовом прогнозе на 23 финансовый год в годовом исчислении - это краткосрочный спад отрасли, поскольку мы достигаем высоких темпов роста и государственных стимулов, а также инвестиции в нашу новую программу членства Best Buy Totaltech, которая, как мы считаем, будет способствовать долгосрочной стоимости. В преддверии 25 финансового года мы ожидаем, что индустрия бытовой электроники вернется к уровню, который мы наблюдали в прошлом году, что намного выше, чем до пандемии, и что Totaltech, Best Buy Health и другие инициативы приведут к значительному росту”.
В связи с сегодняшним отчетом о доходах ожидается, что в 8:00 утра по восточному времени компания проведет объединенную веб-трансляцию новостей о доходах и инвесторах, в ходе которой члены исполнительной команды обсудят квартальные результаты, поделятся обновлениями о стратегических инициативах и предоставят более подробную информацию о следующих финансовых целях:
Результаты внутреннего сегмента за 4 квартал 22 финансового года
Внутренний доход
Внутренний доход в размере 14,99 миллиарда долларов снизился на 2,6% по сравнению с прошлым годом. Снижение было в основном обусловлено сопоставимым снижением продаж на 2,1% и потерей выручки из-за постоянного закрытия магазинов в прошлом году.
С точки зрения мерчандайзинга, крупнейшими факторами сопоставимого роста продаж на взвешенной основе были бытовая техника, виртуальная реальность, домашний кинотеатр и наушники. Эти факторы роста были более чем компенсированы снижением продаж игр, мобильных телефонов, планшетов и услуг.
Внутренний онлайн-доход в размере 5,91 миллиарда долларов снизился на 11,2% по сравнению с аналогичным периодом прошлого года, а в процентах от общего внутреннего дохода онлайн-доход составил примерно 39,4% против 43,2% в прошлом году.
Внутренняя Норма Валовой Прибыли
Валовая прибыль по внутренним ОПБУ составила 20,0% против 20,9% в прошлом году. На основе, не связанной с GAAP, норма валовой прибыли составила 20,0% против 20,7% в прошлом году. Более низкие показатели валовой прибыли по GAAP и не по GAAP были в основном обусловлены более низкими ставками маржи услуг, включая давление, связанное с новым предложением компании о членстве в Totaltech, которое было частично компенсировано более высокими доходами от распределения прибыли от частной торговой марки компании и совместного использования кредитных карт. Норма валовой прибыли по ОПБУ в 21 финансовом году также включала выгоду от урегулирования цены в размере 21 миллиона долларов, полученной в отношении продуктов, купленных и проданных в предыдущие финансовые годы.
Внутренние коммерческие, общие и административные расходы (“SG&A”)
Внутренний показатель SG&A по GAAP составил 2,30 миллиарда долларов, или 15,3% выручки, по сравнению с 2,15 миллиарда долларов, или 14,0% выручки, в прошлом году. На основе, не связанной с GAAP, SG &A составила 2,27 миллиарда долларов, или 15,1% выручки, по сравнению с 2,13 миллиарда долларов, или 13,8% выручки, в прошлом году. Как по GAAP, так и не по GAAP SG&A выросли в основном за счет: (1) расходов на рекламу; (2) инвестиции в технологии; (3) рабочая сила магазина и колл-центра; и (4) Здоровье Best Buy.
Результаты международного сегмента за 4 квартал 22 финансового года
Международные поступления
Международная выручка в размере 1,4 миллиарда долларов снизилась на 10,7% по сравнению с прошлым годом. Это снижение было в основном обусловлено закрытием Мексики в 22 финансовом году и сопоставимым снижением продаж на 3,8% в Канаде. Эти статьи были частично компенсированы выгодой примерно на 150 базисных пунктов от выгодных курсов обмена иностранной валюты.
Международная Норма Валовой Прибыли
Норма валовой прибыли по международным ОПБУ составила 22,9% против 21,6% в прошлом году. На основе, не связанной с GAAP, норма валовой прибыли составила 22,9% против 20,8% в прошлом году. Более высокие показатели валовой прибыли по GAAP и без учета GAAP были в основном обусловлены смешением продаж в Мексике, где норма валовой прибыли была ниже, чем в Канаде, и большим процентом выручки от категории услуг с более высокой маржой в Канаде. Норма валовой прибыли по ОПБУ в 21 финансовом году также включала выгоду в размере 13 миллионов долларов, связанную с более благоприятной, чем ожидалось, уценкой запасов в Мексике.
Международный SG&A
Международный SG&A составил 206 миллионов долларов, или 15,0% выручки, по сравнению с 216 миллионами долларов, или 14,1% выручки, в прошлом году. SG &A снизились в основном из-за закрытия Мексики, что было частично компенсировано увеличением расходов на заработную плату в магазинах в Канаде и влиянием валютных курсов.
Дивиденды и выкуп акций
В 4 квартале 22 финансового года компания вернула акционерам в общей сложности 1,94 миллиарда долларов за счет выкупа акций на сумму 1,77 миллиарда долларов и дивидендов в размере 166 миллионов долларов. За весь год компания вернула акционерам в общей сложности 4,2 миллиарда долларов за счет выкупа акций на сумму 3,5 миллиарда долларов и дивидендов в размере 688 миллионов долларов.
Сегодня компания объявила, что ее совет директоров одобрил увеличение регулярных квартальных дивидендов на 26% до 0,88 доллара на акцию. Регулярные ежеквартальные дивиденды будут выплачены 14 апреля 2022 года акционерам компании record по состоянию на закрытие бизнеса 24 марта 2022 года.
Кроме того, совет директоров компании одобрил новое разрешение на выкуп акций на сумму 5,0 миллиарда долларов, заменив существующее разрешение от февраля 2021 года, в котором на конец 22 финансового года оставалось выкупить 1,6 миллиарда долларов.
Комбинированная веб-трансляция доходов за 4 квартал 22 финансового года и новостей об инвесторах
Best Buy планирует провести видеотрансляцию с 8:00 утра примерно до 10:30 утра по восточному времени 3 марта 2022 года. Члены исполнительной команды обсудят квартальные результаты компании, поделятся обновленной информацией о стратегических инициативах и представят перспективные финансовые цели. После подготовленных замечаний компания проведет виртуальную сессию вопросов и ответов. Видеотрансляция мероприятия будет доступна по адресу www.investors.bestbuy.com , как вживую, так и после события.
(1) Сопоставимые продажи включают выручку от всех магазинов, которые были временно закрыты или работали по усовершенствованной операционной модели только на обочине в результате COVID-19. Метод расчета сопоставимых продаж варьируется в зависимости от отрасли розничной торговли, включая учет случаев закрытия магазинов в результате COVID-19. В результате наш метод расчета сопоставимых продаж может отличаться от методов других розничных продавцов. 24 ноября 2020 года компания объявила о своем решении прекратить свою деятельность в Мексике. В результате вся выручка от операций в Мексике была исключена из расчета сопоставимых продаж, начиная с декабря 21 финансового года. Для получения дополнительной информации о сопоставимых продажах, пожалуйста, ознакомьтесь с нашим последним Годовым отчетом по форме 10-K и нашими последующими Квартальными отчетами по форме 10-Q, поданными в Комиссию по ценным бумагам и биржам (“SEC”) и доступными по адресу www.investors.bestbuy.com .
(2) Сверка прогнозируемого операционного дохода, не относящегося к GAAP, ставки операционного дохода, не относящегося к GAAP, и разводненной прибыли на акцию, не относящейся к GAAP, которые являются прогнозными финансовыми показателями, не относящимися к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями GAAP, не предоставляется, поскольку компания не может предоставить такую сверку без неразумные усилия. Невозможность обеспечить сверку обусловлена неопределенностью и присущими ей трудностями в прогнозировании наступления, финансовых последствий и периодов, в которые могут быть признаны корректировки, не относящиеся к GAAP. Эти показатели GAAP могут включать влияние таких статей, как расходы на реструктуризацию; расчеты по фиксированным ценам; обесценение гудвила; прибыли и убытки от инвестиций; амортизация нематериальных активов; определенные затраты, связанные с приобретением; и налоговый эффект всех таких статей. Исторически сложилось так, что компания исключила эти статьи из финансовых показателей, не относящихся к GAAP. В настоящее время компания планирует продолжать исключать эти статьи в будущих раскрытиях финансовых показателей, не относящихся к GAAP, а также может исключить другие статьи, которые могут возникнуть (в совокупности “корректировки, не относящиеся к GAAP”). Решения и события, которые обычно приводят к признанию корректировок, не относящихся к GAAP, таких как решение о выходе из части бизнеса или достижении урегулирования юридического спора, по своей сути непредсказуемы в отношении того, могут ли они произойти или когда они могут произойти. По тем же причинам компания не в состоянии оценить вероятную значимость недоступной информации, которая может иметь существенное значение для будущих результатов.
Прогнозные и предостерегающие заявления:
В этом выпуске содержатся прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года, содержащиеся в Разделе 27A Закона о ценных бумагах 1933 года и Разделе 21E Закона об обмене ценными бумагами 1934 года, которые отражают текущие взгляды и оценки руководства относительно будущих рыночных условий, деятельности компании и финансовых результатов, операционных инвестиции, перспективы бизнеса, новые стратегии, конкурентная среда и другие события. Вы можете идентифицировать эти утверждения по тому факту, что в них используются такие слова, как “предвидеть”, “верить”, “предполагать”, “оценивать”, “ожидать”, “намереваться”, “предвидеть”, “проект”, “руководство”, “план”, “перспектива" и другие слова и термины с аналогичным значением. Эти заявления связаны с рядом рисков и неопределенностей, которые могут привести к тому, что фактические результаты будут существенно отличаться от потенциальных результатов, обсуждаемых в прогнозных заявлениях. Среди факторов, которые могут вызвать фактические итоги и результаты могут существенно отличаться от тех, которые содержатся в таких заявлениях прогнозного характера относятся: длительность и объем проводимых COVID-19 пандемией и ее возрождения и их влияние на спрос на наши продукты и услуги, уровня потребительского доверия и в нашей цепочке поставок; влияние и продолжительность действия мы предпринимаем и будем предпринимать в ответ на пандемию, включая осуществление промежуточного и развивается операционной модели; действия правительства, юридических и физических лиц предприняли и будем предпринимать в ответ на пандемию и их влияние на уровень экономической активности и потребительских расходов; темпы восстановления, когда текущая COVID-19 пандемией спадет; общей экономической нестабильности в ключевых глобальных рынках и ухудшения мировой экономической конъюнктуры и низкого уровня экономического роста; конкуренции (в том числе многоканальные ритейлеры, электронная коммерция бизнес, технологии-провайдеров, традиционный магазин основе ритейлеров, поставщиков и мобильной связи), расширение стратегий, наше внимание сосредоточено на услуги в качестве стратегического приоритета, наша зависимость от ключевых поставщиков и мобильной связи, нашей способности привлекать и удерживать квалифицированных сотрудников, изменения в рыночной компенсации, ставки, риски, вытекающие из уставных, нормативных и правовых изменений, макроэкономическая ситуация на рынках, где мы работаем, неспособность эффективно управлять нашими затрат, наша зависимость от наших информационно-технических систем, наши способности предотвращать и эффективно реагировать на конфиденциальности и безопасности, нашу способность эффективно управлять стратегических предприятий, альянсов и поглощений, наша зависимость от денежных потоков и чистой прибыли, полученной за четвертый финансовый квартал, восприимчивость нашей продукции на базе современных технологий, жизненный цикл продукта предпочтения и изменения потребительских предпочтений, экономических и регуляторных изменений, которые могут повлиять на нашу способность предоставить привлекательный дизайн, прерываний и прочих цепи поставок вопросов, катастроф, эпидемий, пандемий, наши возможности для поддержания положительного восприятия бренда и признании, безопасности и качества продукции проблемы, изменения в трудовой или трудового законодательства или правил, наша способность эффективно управлять нашими портфеля недвижимости, ограничения на рынках капитала или с нашим поставщиком условий кредитования, изменения в кредитных рейтингах, любой материал, разруха в наших отношениях с вами или службами сторонних поставщиков, рисков, связанных с нашей эксклюзивной продукции бренда и риски, связанные с поставщиками, которые закупаем продукцию за пределами США, включая ограничения на торговлю или изменение цен на импортные ресурсы (в том числе существующих или установления новых тарифов или пошлин, изменения в количестве любые такие пошлины или налоги) и риски, связанные с нашей международной деятельности.
Дополнительный список и описание этих рисков, неопределенностей и других вопросов можно найти в годовом отчете компании и других отчетах, которые время от времени подаются в SEC, включая, но не ограничиваясь, Годовой отчет Best Buy по форме 10-K, поданный в SEC 19 марта 2021 года и его ежеквартальные отчеты по форме 10-Q, поданные в SEC. Best Buy предупреждает, что приведенный выше список важных факторов не является полным, и любые заявления о перспективах относятся только к дате их составления, и Best Buy не берет на себя никаких обязательств по обновлению любых заявлений о перспективах, которые она может сделать.
Best Buy Co., INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (Unaudited and subject to reclassification) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||||
Revenue |
$ |
16,365 |
|
|
|
$ |
16,937 |
|
|
|
$ |
51,761 |
|
|
|
$ |
47,262 |
|
|
Cost of sales |
|
13,052 |
|
|
|
|
13,394 |
|
|
|
|
40,121 |
|
|
|
|
36,689 |
|
|
Gross profit |
|
3,313 |
|
|
|
|
3,543 |
|
|
|
|
11,640 |
|
|
|
|
10,573 |
|
|
Gross profit % |
|
20.2 |
|
% |
|
|
20.9 |
|
% |
|
|
22.5 |
|
% |
|
|
22.4 |
|
% |
Selling, general and administrative expenses |
2,505 |
|
|
|
|
2,368 |
|
|
|
|
8,635 |
|
|
|
|
7,928 |
|
|
|
SG&A % |
|
15.3 |
|
% |
|
|
14.0 |
|
% |
|
|
16.7 |
|
% |
|
|
16.8 |
|
% |
Restructuring charges |
|
5 |
|
|
|
|
142 |
|
|
|
|
(34 |
) |
|
|
|
254 |
|
|
Operating income |
|
803 |
|
|
|
|
1,033 |
|
|
|
|
3,039 |
|
|
|
|
2,391 |
|
|
Operating income % |
|
4.9 |
|
% |
|
|
6.1 |
|
% |
|
|
5.9 |
|
% |
|
|
5.1 |
|
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of investments |
|
- |
|
|
|
|
1 |
|
|
|
|
- |
|
|
|
|
1 |
|
|
Investment income and other |
|
3 |
|
|
|
|
18 |
|
|
|
|
10 |
|
|
|
|
37 |
|
|
Interest expense |
|
(6 |
) |
|
|
|
(9 |
) |
|
|
|
(25 |
) |
|
|
|
(52 |
) |
|
Earnings before income tax expense |
|
800 |
|
|
|
|
1,043 |
|
|
|
|
3,024 |
|
|
|
|
2,377 |
|
|
Income tax expense |
|
172 |
|
|
|
|
227 |
|
|
|
|
574 |
|
|
|
|
579 |
|
|
Effective tax rate |
|
21.4 |
|
% |
|
|
21.6 |
|
% |
|
|
19.0 |
|
% |
|
|
24.3 |
|
% |
Equity in income (loss) of affiliates |
|
(2 |
) |
|
|
|
- |
|
|
|
|
4 |
|
|
|
|
- |
|
|
Net earnings |
$ |
626 |
|
|
|
$ |
816 |
|
|
|
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.65 |
|
|
|
$ |
3.15 |
|
|
|
$ |
9.94 |
|
|
|
$ |
6.93 |
|
|
Diluted earnings per share |
$ |
2.62 |
|
|
|
$ |
3.10 |
|
|
|
$ |
9.84 |
|
|
|
$ |
6.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
236.6 |
|
|
|
|
259.4 |
|
|
|
|
246.8 |
|
|
|
|
259.6 |
|
|
Diluted |
|
239.0 |
|
|
|
|
263.2 |
|
|
|
|
249.3 |
|
|
|
|
263.0 |
|
|
Best Buy Co., INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) (Unaudited and subject to reclassification) |
|||||
|
|
|
|
|
|
|
January 29, 2022 |
January 30, 2021 |
|||
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
2,936 |
$ |
5,494 |
|
Receivables, net |
|
1,042 |
|
1,061 |
|
Merchandise inventories |
|
5,965 |
|
5,612 |
|
Other current assets |
|
596 |
|
373 |
|
Total current assets |
|
10,539 |
|
12,540 |
|
Property and equipment, net |
|
2,250 |
|
2,260 |
|
Operating lease assets |
|
2,654 |
|
2,612 |
|
Goodwill |
|
1,384 |
|
986 |
|
Other assets |
|
677 |
|
669 |
|
Total assets |
$ |
17,504 |
$ |
19,067 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
6,803 |
$ |
6,979 |
|
Unredeemed gift card liabilities |
|
316 |
|
317 |
|
Deferred revenue |
|
1,103 |
|
711 |
|
Accrued compensation and related expenses |
|
845 |
|
725 |
|
Accrued liabilities |
|
946 |
|
972 |
|
Short-term debt |
|
- |
|
110 |
|
Current portion of operating lease liabilities |
|
648 |
|
693 |
|
Current portion of long-term debt |
|
13 |
|
14 |
|
Total current liabilities |
|
10,674 |
|
10,521 |
|
Long-term operating lease liabilities |
|
2,061 |
|
2,012 |
|
Long-term liabilities |
|
533 |
|
694 |
|
Long-term debt |
|
1,216 |
|
1,253 |
|
Equity |
|
3,020 |
|
4,587 |
|
Total liabilities and equity |
$ |
17,504 |
$ |
19,067 |
Best Buy Co., INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) (Unaudited and subject to reclassification) |
|||||||||
|
|
|
|
|
|
|
|
||
|
Twelve Months Ended |
||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Operating activities |
|
|
|
|
|
|
|
||
Net earnings |
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
Adjustments to reconcile net earnings to total cash provided by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
869 |
|
|
|
|
839 |
|
|
Restructuring charges |
|
(34 |
) |
|
|
|
254 |
|
|
Stock-based compensation |
|
141 |
|
|
|
|
135 |
|
|
Deferred income taxes |
|
14 |
|
|
|
|
(36 |
) |
|
Other, net |
|
11 |
|
|
|
|
3 |
|
|
Changes in operating assets and liabilities, net of acquired assets and liabilities: |
|
|
|
|
|
|
|
||
Receivables |
|
17 |
|
|
|
|
73 |
|
|
Merchandise inventories |
|
(328 |
) |
|
|
|
(435 |
) |
|
Other assets |
|
(14 |
) |
|
|
|
(51 |
) |
|
Accounts payable |
|
(201 |
) |
|
|
|
1,676 |
|
|
Income taxes |
|
(156 |
) |
|
|
|
173 |
|
|
Other liabilities |
|
479 |
|
|
|
|
498 |
|
|
Total cash provided by operating activities |
|
3,252 |
|
|
|
|
4,927 |
|
|
|
|
|
|
|
|
|
|
||
Investing activities |
|
|
|
|
|
|
|
||
Additions to property and equipment |
|
(737 |
) |
|
|
|
(713 |
) |
|
Purchases of investments |
|
(233 |
) |
|
|
|
(620 |
) |
|
Sales of investments |
|
66 |
|
|
|
|
546 |
|
|
Acquisitions, net of cash acquired |
|
(468 |
) |
|
|
|
- |
|
|
Other, net |
|
- |
|
|
|
|
(1 |
) |
|
Total cash used in investing activities |
|
(1,372 |
) |
|
|
|
(788 |
) |
|
|
|
|
|
|
|
|
|
||
Financing activities |
|
|
|
|
|
|
|
||
Repurchase of common stock |
|
(3,502 |
) |
|
|
|
(312 |
) |
|
Issuance of common stock |
|
29 |
|
|
|
|
28 |
|
|
Dividends paid |
|
(688 |
) |
|
|
|
(568 |
) |
|
Borrowings of debt |
|
- |
|
|
|
|
1,892 |
|
|
Repayments of debt |
|
(133 |
) |
|
|
|
(1,916 |
) |
|
Other, net |
|
(3 |
) |
|
|
|
- |
|
|
Total cash used in financing activities |
|
(4,297 |
) |
|
|
|
(876 |
) |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
(3 |
) |
|
|
|
7 |
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(2,420 |
) |
|
|
|
3,270 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
5,625 |
|
|
|
|
2,355 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,205 |
|
|
|
$ |
5,625 |
|
|
Best Buy Co., INC. SEGMENT INFORMATION ($ in millions) (Unaudited and subject to reclassification) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
Domestic Segment Results |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||
Revenue |
$ |
14,993 |
|
|
|
$ |
15,400 |
|
|
$ |
47,830 |
|
|
|
$ |
43,293 |
|
Comparable sales % change |
|
(2.1 |
) |
% |
|
|
12.4 |
% |
|
|
11.0 |
|
% |
|
|
9.2 |
% |
Comparable online sales % change |
|
(11.2 |
) |
% |
|
|
89.3 |
% |
|
|
(12.0 |
) |
% |
|
|
144.4 |
% |
Gross profit |
$ |
2,999 |
|
|
|
$ |
3,211 |
|
|
$ |
10,702 |
|
|
|
$ |
9,720 |
|
Gross profit as a % of revenue |
|
20.0 |
|
% |
|
|
20.9 |
% |
|
|
22.4 |
|
% |
|
|
22.5 |
% |
SG&A |
$ |
2,299 |
|
|
|
$ |
2,152 |
|
|
$ |
7,946 |
|
|
|
$ |
7,239 |
|
SG&A as a % of revenue |
|
15.3 |
|
% |
|
|
14.0 |
% |
|
|
16.6 |
|
% |
|
|
16.7 |
% |
Operating income |
$ |
695 |
|
|
|
$ |
971 |
|
|
$ |
2,795 |
|
|
|
$ |
2,348 |
|
Operating income as a % of revenue |
|
4.6 |
|
% |
|
|
6.3 |
% |
|
|
5.8 |
|
% |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Domestic Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Gross profit |
$ |
2,999 |
|
|
|
$ |
3,190 |
|
|
$ |
10,702 |
|
|
|
$ |
9,699 |
|
Gross profit as a % of revenue |
|
20.0 |
|
% |
|
|
20.7 |
% |
|
|
22.4 |
|
% |
|
|
22.4 |
% |
SG&A |
$ |
2,271 |
|
|
|
$ |
2,132 |
|
|
$ |
7,853 |
|
|
|
$ |
7,159 |
|
SG&A as a % of revenue |
|
15.1 |
|
% |
|
|
13.8 |
% |
|
|
16.4 |
|
% |
|
|
16.5 |
% |
Operating income |
$ |
728 |
|
|
|
$ |
1,058 |
|
|
$ |
2,849 |
|
|
|
$ |
2,540 |
|
Operating income as a % of revenue |
|
4.9 |
|
% |
|
|
6.9 |
% |
|
|
6.0 |
|
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
International Segment Results |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||
Revenue |
$ |
1,372 |
|
|
|
$ |
1,537 |
|
|
$ |
3,931 |
|
|
|
$ |
3,969 |
|
Comparable sales % change |
|
(3.8 |
) |
% |
|
|
14.9 |
% |
|
|
3.3 |
|
% |
|
|
15.0 |
% |
Gross profit |
$ |
314 |
|
|
|
$ |
332 |
|
|
$ |
938 |
|
|
|
$ |
853 |
|
Gross profit as a % of revenue |
|
22.9 |
|
% |
|
|
21.6 |
% |
|
|
23.9 |
|
% |
|
|
21.5 |
% |
SG&A |
$ |
206 |
|
|
|
$ |
216 |
|
|
$ |
689 |
|
|
|
$ |
689 |
|
SG&A as a % of revenue |
|
15.0 |
|
% |
|
|
14.1 |
% |
|
|
17.5 |
|
% |
|
|
17.4 |
% |
Operating income |
$ |
108 |
|
|
|
$ |
62 |
|
|
$ |
244 |
|
|
|
$ |
43 |
|
Operating income as a % of revenue |
|
7.9 |
|
% |
|
|
4.0 |
% |
|
|
6.2 |
|
% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
International Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
$ |
314 |
|
|
|
$ |
319 |
|
|
$ |
932 |
|
|
|
$ |
876 |
|
Gross profit as a % of revenue |
|
22.9 |
|
% |
|
|
20.8 |
% |
|
|
23.7 |
|
% |
|
|
22.1 |
% |
SG&A |
$ |
206 |
|
|
|
$ |
216 |
|
|
$ |
689 |
|
|
|
$ |
689 |
|
SG&A as a % of revenue |
|
15.0 |
|
% |
|
|
14.1 |
% |
|
|
17.5 |
|
% |
|
|
17.4 |
% |
Operating income |
$ |
108 |
|
|
|
$ |
103 |
|
|
$ |
243 |
|
|
|
$ |
187 |
|
Operating income as a % of revenue |
|
7.9 |
|
% |
|
|
6.7 |
% |
|
|
6.2 |
|
% |
|
|
4.7 |
% |
(1) For GAAP to non-GAAP reconciliations, please refer to the attached supporting schedule titled Reconciliation of Non-GAAP Financial Measures. |
Best Buy Co., INC. REVENUE CATEGORY SUMMARY (Unaudited and subject to reclassification) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue Mix |
|
Comparable Sales |
||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||
Domestic Segment |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Computing and Mobile Phones |
42 |
% |
|
43 |
% |
|
(6.0 |
) |
% |
|
16.4 |
|
% |
Consumer Electronics |
34 |
% |
|
32 |
% |
|
2.9 |
|
% |
|
(1.3 |
) |
% |
Appliances |
13 |
% |
|
12 |
% |
|
7.9 |
|
% |
|
36.0 |
|
% |
Entertainment |
8 |
% |
|
9 |
% |
|
(9.5 |
) |
% |
|
31.4 |
|
% |
Services |
3 |
% |
|
4 |
% |
|
(14.8 |
) |
% |
|
4.9 |
|
% |
Other |
- |
% |
|
- |
% |
|
N/A |
|
|
|
N/A |
|
|
Total |
100 |
% |
|
100 |
% |
|
(2.1 |
) |
% |
|
12.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue Mix |
|
Comparable Sales |
||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||
International Segment |
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Computing and Mobile Phones |
40 |
% |
|
42 |
% |
|
(6.0 |
) |
% |
|
20.5 |
|
% |
Consumer Electronics |
35 |
% |
|
34 |
% |
|
(3.8 |
) |
% |
|
2.4 |
|
% |
Appliances |
9 |
% |
|
9 |
% |
|
(1.2 |
) |
% |
|
26.8 |
|
% |
Entertainment |
10 |
% |
|
10 |
% |
|
(6.9 |
) |
% |
|
59.5 |
|
% |
Services |
4 |
% |
|
3 |
% |
|
23.0 |
|
% |
|
(18.0 |
) |
% |
Other |
2 |
% |
|
2 |
% |
|
2.8 |
|
% |
|
6.5 |
|
% |
Total |
100 |
% |
|
100 |
% |
|
(3.8 |
) |
% |
|
14.9 |
|
% |
Best Buy Co., INC. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
($ in millions, except per share amounts) |
(Unaudited and subject to reclassification) |
|
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. The company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Generally, presented non-GAAP financial measures include adjustments for items such as restructuring charges, price-fixing settlements, goodwill impairments, gains and losses on investments, intangible asset amortization, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this earnings release and the company’s financial statements and other publicly filed reports. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies. |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
|||||||||||||||||
Gross profit |
$ |
2,999 |
|
|
|
$ |
314 |
|
|
$ |
3,313 |
|
|
|
$ |
3,211 |
|
|
|
$ |
332 |
|
|
|
$ |
3,543 |
|
|
% of revenue |
|
20.0 |
|
% |
|
|
22.9 |
% |
|
|
20.2 |
|
% |
|
|
20.9 |
|
% |
|
|
21.6 |
|
% |
|
|
20.9 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(13 |
) |
|
|
|
(13 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
|
(21 |
) |
|
Non-GAAP gross profit |
$ |
2,999 |
|
|
|
$ |
314 |
|
|
$ |
3,313 |
|
|
|
$ |
3,190 |
|
|
|
$ |
319 |
|
|
|
$ |
3,509 |
|
|
% of revenue |
|
20.0 |
|
% |
|
|
22.9 |
% |
|
|
20.2 |
|
% |
|
|
20.7 |
|
% |
|
|
20.8 |
|
% |
|
|
20.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SG&A |
$ |
2,299 |
|
|
|
$ |
206 |
|
|
$ |
2,505 |
|
|
|
$ |
2,152 |
|
|
|
$ |
216 |
|
|
|
$ |
2,368 |
|
|
% of revenue |
|
15.3 |
|
% |
|
|
15.0 |
% |
|
|
15.3 |
|
% |
|
|
14.0 |
|
% |
|
|
14.1 |
|
% |
|
|
14.0 |
|
% |
Intangible asset amortization3 |
|
(22 |
) |
|
|
|
- |
|
|
|
(22 |
) |
|
|
|
(20 |
) |
|
|
|
- |
|
|
|
|
(20 |
) |
|
Acquisition-related transaction costs3 |
|
(6 |
) |
|
|
|
- |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Non-GAAP SG&A |
$ |
2,271 |
|
|
|
$ |
206 |
|
|
$ |
2,477 |
|
|
|
$ |
2,132 |
|
|
|
$ |
216 |
|
|
|
$ |
2,348 |
|
|
% of revenue |
|
15.1 |
|
% |
|
|
15.0 |
% |
|
|
15.1 |
|
% |
|
|
13.8 |
|
% |
|
|
14.1 |
|
% |
|
|
13.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
$ |
695 |
|
|
|
$ |
108 |
|
|
$ |
803 |
|
|
|
$ |
971 |
|
|
|
$ |
62 |
|
|
|
$ |
1,033 |
|
|
% of revenue |
|
4.6 |
|
% |
|
|
7.9 |
% |
|
|
4.9 |
|
% |
|
|
6.3 |
|
% |
|
|
4.0 |
|
% |
|
|
6.1 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(13 |
) |
|
|
|
(13 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
|
(21 |
) |
|
Intangible asset amortization3 |
|
22 |
|
|
|
|
- |
|
|
|
22 |
|
|
|
|
20 |
|
|
|
|
- |
|
|
|
|
20 |
|
|
Acquisition-related transaction costs3 |
|
6 |
|
|
|
|
- |
|
|
|
6 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
5 |
|
|
|
|
- |
|
|
|
5 |
|
|
|
|
88 |
|
|
|
|
54 |
|
|
|
|
142 |
|
|
Non-GAAP operating income |
$ |
728 |
|
|
|
$ |
108 |
|
|
$ |
836 |
|
|
|
$ |
1,058 |
|
|
|
$ |
103 |
|
|
|
$ |
1,161 |
|
|
% of revenue |
|
4.9 |
|
% |
|
|
7.9 |
% |
|
|
5.1 |
|
% |
|
|
6.9 |
|
% |
|
|
6.7 |
|
% |
|
|
6.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective tax rate |
|
|
|
|
|
|
|
|
|
21.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
21.6 |
|
% |
|||
Price-fixing settlement2 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.2 |
|
% |
|||
Intangible asset amortization3 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.1 |
) |
% |
|||
Restructuring charges4 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.8 |
) |
% |
|||
Gain on investments, net |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|||
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
21.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
21.0 |
|
% |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|||||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
$ |
3.10 |
|
|
||
Restructuring - inventory markdowns1 |
$ |
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
(13 |
) |
|
|
$ |
(13 |
) |
|
|
|
(0.05 |
) |
|
Price-fixing settlement2 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(21 |
) |
|
|
|
(15 |
) |
|
|
|
(0.06 |
) |
|
Intangible asset amortization3 |
|
22 |
|
|
|
18 |
|
|
|
0.08 |
|
|
|
20 |
|
|
|
|
15 |
|
|
|
|
0.06 |
|
|
Acquisition-related transaction costs3 |
|
6 |
|
|
|
5 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
5 |
|
|
|
3 |
|
|
|
0.01 |
|
|
|
142 |
|
|
|
|
121 |
|
|
|
|
0.46 |
|
|
Gain on investments, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
|
(9 |
) |
|
|
|
(0.03 |
) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
2.73 |
|
|
|
|
|
|
|
|
|
|
$ |
3.48 |
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
|||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
|||||||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
|||||||||||||||||
Gross profit |
$ |
10,702 |
|
|
|
$ |
938 |
|
|
|
$ |
11,640 |
|
|
|
$ |
9,720 |
|
|
|
$ |
853 |
|
|
$ |
10,573 |
|
|
% of revenue |
|
22.4 |
|
% |
|
|
23.9 |
|
% |
|
|
22.5 |
|
% |
|
|
22.5 |
|
% |
|
|
21.5 |
% |
|
|
22.4 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
(6 |
) |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
23 |
|
|
|
23 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
(21 |
) |
|
Non-GAAP gross profit |
$ |
10,702 |
|
|
|
$ |
932 |
|
|
|
$ |
11,634 |
|
|
|
$ |
9,699 |
|
|
|
$ |
876 |
|
|
$ |
10,575 |
|
|
% of revenue |
|
22.4 |
|
% |
|
|
23.7 |
|
% |
|
|
22.5 |
|
% |
|
|
22.4 |
|
% |
|
|
22.1 |
% |
|
|
22.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SG&A |
$ |
7,946 |
|
|
|
$ |
689 |
|
|
|
$ |
8,635 |
|
|
|
$ |
7,239 |
|
|
|
$ |
689 |
|
|
$ |
7,928 |
|
|
% of revenue |
|
16.6 |
|
% |
|
|
17.5 |
|
% |
|
|
16.7 |
|
% |
|
|
16.7 |
|
% |
|
|
17.4 |
% |
|
|
16.8 |
|
% |
Intangible asset amortization3 |
|
(82 |
) |
|
|
|
- |
|
|
|
|
(82 |
) |
|
|
|
(80 |
) |
|
|
|
- |
|
|
|
(80 |
) |
|
Acquisition-related transaction costs3 |
|
(11 |
) |
|
|
|
- |
|
|
|
|
(11 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Non-GAAP SG&A |
$ |
7,853 |
|
|
|
$ |
689 |
|
|
|
$ |
8,542 |
|
|
|
$ |
7,159 |
|
|
|
$ |
689 |
|
|
$ |
7,848 |
|
|
% of revenue |
|
16.4 |
|
% |
|
|
17.5 |
|
% |
|
|
16.5 |
|
% |
|
|
16.5 |
|
% |
|
|
17.4 |
% |
|
|
16.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
$ |
2,795 |
|
|
|
$ |
244 |
|
|
|
$ |
3,039 |
|
|
|
$ |
2,348 |
|
|
|
$ |
43 |
|
|
$ |
2,391 |
|
|
% of revenue |
|
5.8 |
|
% |
|
|
6.2 |
|
% |
|
|
5.9 |
|
% |
|
|
5.4 |
|
% |
|
|
1.1 |
% |
|
|
5.1 |
|
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
|
(6 |
) |
|
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
23 |
|
|
|
23 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
- |
|
|
|
(21 |
) |
|
Intangible asset amortization3 |
|
82 |
|
|
|
|
- |
|
|
|
|
82 |
|
|
|
|
80 |
|
|
|
|
- |
|
|
|
80 |
|
|
Acquisition-related transaction costs3 |
|
11 |
|
|
|
|
- |
|
|
|
|
11 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Restructuring charges4 |
|
(39 |
) |
|
|
|
5 |
|
|
|
|
(34 |
) |
|
|
|
133 |
|
|
|
|
121 |
|
|
|
254 |
|
|
Non-GAAP operating income |
$ |
2,849 |
|
|
|
$ |
243 |
|
|
|
$ |
3,092 |
|
|
|
$ |
2,540 |
|
|
|
$ |
187 |
|
|
$ |
2,727 |
|
|
% of revenue |
|
6.0 |
|
% |
|
|
6.2 |
|
% |
|
|
6.0 |
|
% |
|
|
5.9 |
|
% |
|
|
4.7 |
% |
|
|
5.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective tax rate |
|
|
|
|
|
|
|
|
|
19.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
24.3 |
|
% |
|||
Price-fixing settlement2 |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.2 |
|
% |
|||
Intangible asset amortization3 |
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
(0.6 |
) |
% |
|||
Restructuring charges4 |
|
|
|
|
|
|
|
|
|
(0.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
(1.0 |
) |
% |
|||
Gain on investments, net |
|
|
|
|
|
|
|
|
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
|
% |
|||
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
19.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
23.0 |
|
% |
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||||||||||||||||||||||
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
|
Pretax
|
|
Net of Tax5 |
|
Per Share |
||||||||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
9.84 |
|
|
|
|
|
|
|
|
|
|
|
$ |
6.84 |
|
|
||||
Restructuring - inventory markdowns1 |
$ |
(6 |
) |
|
|
$ |
(6 |
) |
|
|
|
(0.02 |
) |
|
|
$ |
23 |
|
|
|
$ |
23 |
|
|
|
|
0.09 |
|
|
Price-fixing settlement2 |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(21 |
) |
|
|
|
(15 |
) |
|
|
|
(0.06 |
) |
|
Intangible asset amortization3 |
|
82 |
|
|
|
|
62 |
|
|
|
|
0.25 |
|
|
|
|
80 |
|
|
|
|
60 |
|
|
|
|
0.23 |
|
|
Acquisition-related transaction costs3 |
|
11 |
|
|
|
|
10 |
|
|
|
|
0.04 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Restructuring charges4 |
|
(34 |
) |
|
|
|
(24 |
) |
|
|
|
(0.10 |
) |
|
|
|
254 |
|
|
|
|
222 |
|
|
|
|
0.84 |
|
|
Gain on investments, net |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(12 |
) |
|
|
|
(9 |
) |
|
|
|
(0.03 |
) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
10.01 |
|
|
|
|
|
|
|
|
|
|
|
$ |
7.91 |
|
|
(1) |
Represents inventory markdown adjustments recorded within cost of sales associated with the decision to exit operations in Mexico. |
|
(2) |
Represents a price-fixing litigation settlement received in relation to products purchased and sold in prior fiscal years. |
|
(3) |
Represents charges associated with acquisitions, including: (1) the non-cash amortization of definite-lived intangible assets, including customer relationships, tradenames and developed technology; and (2) acquisition-related transaction and due diligence costs, primarily comprised of professional fees. |
|
(4) |
Represents charges and subsequent adjustments primarily related to actions taken in the Domestic segment to better align the company’s organizational structure with its strategic focus and the decision to exit operations in Mexico in the International segment. |
|
(5) |
The non-GAAP adjustments primarily relate to the U.S. and Mexico. As such, the income tax charge is generally calculated using the statutory tax rate of 24.5% for U.S. non-GAAP items for all periods presented. There is no income tax charge for Mexico non-GAAP items and a minimal amount of U.S. non-GAAP items, as there was no tax benefit recognized on these expenses in the calculation of GAAP income tax expense. |
Return on Assets and Non-GAAP Return on Investment |
|
The tables below provide calculations of return on assets ("ROA") (GAAP financial measure) and non-GAAP return on investment (“ROI”) (non-GAAP financial measure) for the periods presented. The company believes ROA is the most directly comparable financial measure to ROI. Non-GAAP ROI is defined as non-GAAP adjusted operating income after tax divided by average invested operating assets. All periods presented below apply this methodology consistently. The company believes non-GAAP ROI is a meaningful metric for investors to evaluate capital efficiency because it measures how key assets are deployed by adjusting operating income and total assets for the items noted below. This method of determining non-GAAP ROI may differ from other companies' methods and therefore may not be comparable to those used by other companies. |
Return on Assets ("ROA") |
January 29, 20221 |
|
January 30, 20211 |
||||||
Net earnings |
$ |
2,454 |
|
|
|
$ |
1,798 |
|
|
Total assets |
|
18,743 |
|
|
|
|
18,408 |
|
|
ROA |
|
13.1 |
|
% |
|
|
9.8 |
|
% |
|
|
|
|
|
|
|
|
||
Non-GAAP Return on Investment ("ROI") |
January 29, 20221 |
|
January 30, 20211 |
||||||
Numerator |
|
|
|
|
|
|
|
||
Operating income |
$ |
3,039 |
|
|
|
$ |
2,391 |
|
|
Add: Non-GAAP operating income adjustments2 |
|
53 |
|
|
|
|
336 |
|
|
Add: Operating lease interest3 |
|
108 |
|
|
|
|
111 |
|
|
Less: Income taxes4 |
|
(784 |
) |
|
|
|
(695 |
) |
|
Add: Depreciation |
|
787 |
|
|
|
|
759 |
|
|
Add: Operating lease amortization5 |
|
657 |
|
|
|
|
665 |
|
|
Adjusted operating income after tax |
$ |
3,860 |
|
|
|
$ |
3,567 |
|
|
|
|
|
|
|
|
|
|
||
Denominator |
|
|
|
|
|
|
|
||
Total assets |
$ |
18,743 |
|
|
|
$ |
18,408 |
|
|
Less: Excess cash6 |
|
(3,055 |
) |
|
|
|
(4,071 |
) |
|
Add: Accumulated depreciation and amortization7 |
|
6,957 |
|
|
|
|
7,114 |
|
|
Less: Adjusted current liabilities8 |
|
(10,122 |
) |
|
|
|
(9,189 |
) |
|
Average invested operating assets |
$ |
12,523 |
|
|
|
$ |
12,262 |
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP ROI |
|
30.8 |
|
% |
|
|
29.1 |
|
% |
(1) | Income statement accounts represent the activity for the trailing 12 months ended as of each of the balance sheet dates. Balance sheet accounts represent the average account balances for the trailing 12 months ended as of each of the balance sheet dates. |
|
(2) | Non-GAAP operating income adjustments include continuing operations adjustments for restructuring charges, intangible asset amortization, acquisition-related transaction costs and price-fixing settlements. Additional details regarding these adjustments are included in the Reconciliation of Non-GAAP Financial Measures schedule in this earnings release. |
|
(3) | Operating lease interest represents the add-back to operating income to approximate the total interest expense that the company would incur if its operating leases were owned and financed by debt. The add-back is approximated by multiplying average operating lease assets by 4%, which approximates the interest rate on the company’s operating lease liabilities. |
|
(4) | Income taxes are approximated by using a blended statutory rate at the Enterprise level based on statutory rates from the countries in which the company does business, which primarily consists of the U.S. with a statutory rate of 24.5% for the periods presented. |
|
(5) | Operating lease amortization represents operating lease cost less operating lease interest. Operating lease cost includes short-term leases, which are immaterial, and excludes variable lease costs as these costs are not included in the operating lease asset balance. |
|
(6) | Excess cash represents the amount of cash, cash equivalents and short-term investments greater than $1 billion, which approximates the amount of cash the company believes is necessary to run the business and may fluctuate over time. |
|
(7) | Accumulated depreciation and amortization represents accumulated depreciation related to property and equipment and accumulated amortization related to definite-lived intangible assets. |
|
(8) | Adjusted current liabilities represent total current liabilities less short-term debt and the current portions of operating lease liabilities and long-term debt. |
Free Cash Flow |
($ in millions) |
(Unaudited and subject to reclassification) |
|
The table below provides a reconciliation of cash provided by operating activities (GAAP financial measure) to free cash flow (non-GAAP financial measure) for the periods presented. The company believes free cash flow, which measures our ability to generate additional cash from our ongoing business operations, is a relevant supplementary measure for investors in evaluating the company’s financial performance. In addition, it is one factor used by the company in determining the amount of cash available for acquisitions, dividends, share repurchases and other discretionary investments. This method of determining free cash flow may differ from other companies' methods and therefore may not be comparable to those used by other companies. |
|
Twelve Months Ended |
||||||||
|
January 29, 2022 |
|
January 30, 2021 |
||||||
Cash provided by operating activities |
$ |
3,252 |
|
|
|
$ |
4,927 |
|
|
Less: Additions to property and equipment, net |
|
(737 |
) |
|
|
|
(713 |
) |
|
Free cash flow |
$ |
2,515 |
|
|
|
$ |
4,214 |
|
|