- The stock price of Best Buy Co Inc (NYSE: BBY) fell by over 14% pre-market today. This is why it happened.
The stock price of Best Buy Co Inc (NYSE: BBY) fell by over 14% pre-market today. Investors responded negatively to potential shipping bottlenecks and weaker demand for electronics in general.
Net sales for the quarter increased to $11.91 billion from $11.85 billion a year earlier. And net income increased to $499 million (or $2 per share) from $391 million (or $1.48 per share) a year earlier.
Financial Outlook
The company is providing the following Enterprise outlook:
Q4 FY22:
— Revenue of $16.4 billion to $16.9 billion
— Comparable sales growth of -2.0% to +1.0%
— Non-GAAP gross profit rate decline of approximately 30 basis points to last year
— Non-GAAP SG&A dollar growth of approximately 8% to last year
— Non-GAAP effective income tax rate2 of approximately 24.0%
FY22:
— Revenue of $51.8 billion to $52.3 billion compared to the prior outlook of $51.0 billion to $52.0 billion
— Comparable sales growth of 10.5% to 11.5% compared to the prior outlook of 9% to 11% growth
— Non-GAAP gross profit rate slightly higher than last year, which remains unchanged
— Non-GAAP SG&A growth of approximately 9.5% compared to the prior outlook of 9% growth
— Non-GAAP effective income tax rate2 of approximately 20.0%, which remains unchanged
— Share repurchases of more than $2.5 billion, which remains unchanged
Domestic Segment Q3 FY22 Results
— Domestic revenue of $10.99 billion increased 1.2% versus last year. The increase was primarily driven by comparable sales growth of 2%, which was partially offset by 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, home theater and mobile phones. And these positive drivers were partially offset by a decline in computing.
— Domestic online revenue of $3.44 billion decreased 10.1% on a comparable basis, and as a percentage of total Domestic revenue, online revenue decreased to approximately 31.3% versus 35.2% last year.
KEY QUOTES:
“We delivered record Q3 results, including 2% Domestic comparable sales on top of 22.6% last year, as our leaders continued to drive new ways of operating and our employees continued to do amazing things to support our customer’s technology needs in knowledgeable, fast and convenient ways. Our omnichannel capabilities and our ability to inspire and support across all of technology in a way no one else can means we are uniquely positioned to seize the opportunity in this environment and in the future.”
“More people continue to sustainably work, entertain, cook and connect at home, and while customers are returning to stores, digital sales were still more than double pre-pandemic levels, and phone, chat and in-home sales continued to grow. During the third quarter, we reached our fastest small-package online shipping times ever as our same-day delivery was up 400% and we nearly doubled the percent of products delivered within one day compared to last year.”
— Corie Barry, Best Buy CEO
“We are looking forward to a strong holiday season and believe we are extremely well-positioned with both the tech customers want and fast and convenient ways to get it. We are committed to driving initiatives that will deliver future growth and our Q4 outlook reflects continued investments in our new membership program, technology, advertising and our health strategy.”
— Matt Bilunas, Best Buy CFO
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
