NYSE$BBY

Best Buy Co Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Best Buy reported better-than-expected first quarter results, with enterprise comparable sales increasing by 37.2% and GAAP diluted EPS increasing by 280% to $2.32. The company raised its full-year enterprise comparable sales growth outlook to a range of 3% to 6%.

Best Buy's Q1 FY22 results exceeded expectations, driven by extraordinarily high customer demand for technology products and services. The company's enterprise comparable sales increased by 37.2%, and GAAP diluted EPS increased by 280% to $2.32. Due to the strong start to the year, Best Buy raised its full-year enterprise comparable sales growth outlook to a range of 3% to 6%.

  • Enterprise comparable sales increased 37.2%.
  • GAAP diluted EPS increased 280% to $2.32.
  • Non-GAAP diluted EPS increased 233% to $2.23.
  • Full-year enterprise comparable sales growth outlook raised to a range of 3% to 6%.

Headline financials

Total Revenue

$11.6B

Previous: $8.56B+35.9%
EPS (adj)

$2.23

Previous: $0.67+232.8%
Domestic comparable sales

37.9%

Previous: -5.7%+764.9%
International comparable sales

27.8%

Previous: 0.2%+13800.0%
Capital Expenditures

$161M

Previous: -$178M+190.4%
Free Cash Flow

-$56M

Previous: -$19M-194.7%
Net Income

$595M

Previous: $159M+274.2%
Operating Income

$769M

Previous: $229M+235.8%
Gross Profit

$2.72B

Previous: $1.97B+38.2%
Cash & Equivalents

$4.28B

Previous: $3.92B+9.2%
Total Assets

$17.7B

Previous: $15.6B+13.5%
Stock-Based Comp

$37M

Previous: $15M+146.7%

Revenue & EPS history

Best Buy · Revenue · Quarterly

$11.6B

Q1 2022+35.9%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Best Buy · $11.6B total across 2 segments · Q1 2022

  • Domestic segment
    $10.8B+37.0%
  • International segment
    $796M+23.0%

Forward guidance

Best Buy expects enterprise comparable sales growth of approximately 17% and a non-GAAP gross profit rate approximately flat to the Q2 FY21 rate of 22.9%. Enterprise non-GAAP SG&A growth is expected to be approximately 20%. For the full year, Best Buy anticipates enterprise comparable sales growth of 3% to 6%.

Tailwinds

  • Enterprise comparable sales growth of approximately 17% in Q2 FY22.
  • Enterprise non-GAAP gross profit rate approximately flat to the Q2 FY21 rate of 22.9%.
  • Enterprise non-GAAP SG&A growth of approximately 20%.
  • Enterprise comparable sales growth of 3% to 6% for FY22.
  • Enterprise non-GAAP gross profit rate approximately flat to the FY21 rate of 22.4%.

Headwinds

  • Shopping behavior is expected to evolve as customers spend more time on activities like eating out and traveling.
  • The impact of evolving shopping behavior on Best Buy's business is uncertain.
  • Difficult to predict the impact of lapping particularly strong sales in the back half of last year.
  • Original FY22 back-half sales assumptions remain unchanged.
  • Uncertainty and inherent difficulty predicting the occurrence and financial impact of non-GAAP adjustments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+0.1%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+20.4%

Q2 2016

Best reaction

-16.8%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+13.3%+8.3%+4.7%
Q3 2026+4.4%+4.8%-7.8%
Q2 2026-3.8%-1.3%+0.9%
Q1 2026-7.1%-2.3%-4.6%
Q4 2025-13.3%-8.5%-28.3%
Q3 2025-5.2%-3.3%-3.9%
Q2 2025+14.4%+15.0%+16.5%
Q1 2025+18.0%+22.2%+17.2%
Q4 2024-2.2%-4.7%+2.9%
Q3 2024-0.1%+2.1%+11.3%
Q2 2024+2.5%+1.6%-7.0%
Q1 2024+7.5%+6.1%+14.4%
Q4 2023+0.9%-0.3%-5.2%
Q3 2023+16.3%+14.7%+13.6%
Q2 2023-4.1%-3.5%-11.7%
Q1 2023+10.3%+15.7%-1.8%
Q4 2022+5.2%+0.3%-10.4%
Q2 2022+8.7%+4.8%-5.3%
Q1 2022-0.6%-1.8%-3.3%
Q4 2021-11.6%-9.6%+5.1%
Q3 2021-6.7%-7.7%-16.0%
Q2 2021-4.3%-5.2%-10.7%
Q1 2021-5.7%-2.5%-0.4%
Q4 2020-7.9%-6.9%-24.0%
Q3 2020+8.7%+8.6%+18.3%
Q2 2020-7.8%-8.4%-1.1%
Q1 2020-4.7%-5.5%-2.4%
Q4 2019+14.1%+11.2%+17.8%
Q3 2019-0.2%+0.6%-19.0%
Q2 2019-4.9%-2.6%-4.2%
Q1 2019-9.9%-10.2%+0.4%
Q4 2018+0.8%+6.0%-3.4%
Q3 2018-2.6%-2.2%+14.0%
Q2 2018-13.3%-12.8%-9.0%
Q1 2018+17.0%+17.6%+9.4%
Q4 2017+1.6%-0.5%+11.4%
Q3 2017+10.7%+15.2%+16.2%
Q2 2017+20.4%+20.4%+17.3%
Q1 2017-2.8%-2.9%-7.8%
Q4 2016+3.1%
Q3 2016-2.6%
Q2 2016+20.4%
Q1 2016+1.6%
Q4 2015+3.0%
Q3 2015+7.0%
Q2 2015-0.9%
Q1 2015+6.5%
Q4 2014-3.1%
Q3 2014-11.1%
Q2 2014+9.8%
Q1 2014-4.3%
Q4 2013+8.3%
Q3 2013-15.9%
Q2 2013-2.4%
Q1 2013+2.2%
Q4 2012-11.0%
Q3 2012-16.8%
Q2 2012-3.8%
Q1 2012+5.5%
Q4 2011+1.9%
Q3 2011+0.6%
Q2 2011+0.7%
Q1 2010-0.2%
Q1 2011-3.6%
Q4 2010+2.6%
Q4 2008+2.6%
Q3 2010-2.4%
Q3 2009-2.4%
Q2 2010+0.9%
Q2 2009+0.9%
Q4 2009+0.9%

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