Q2 2025 Best Buy Co Inc Earnings Call Transcript
Key Points
- Best Buy Co Inc (BBY) reported better-than-expected results for the second quarter, with a comparable sales decline of 2.3%, which was better than the guidance of down 3% and last quarter's decline of 6.1%.
- The company delivered a non-GAAP operating income rate of 4.1%, higher than the guided 3.5%, due to lower-than-expected SG&A expenses.
- Strong performance in domestic tablet and computing categories, with a combined comparable sales growth of 6% year-over-year.
- The omnichannel operations provided strong support for Q2 online sales, which remained consistent at 32% of domestic revenue, with almost 60% of packages delivered or available for pickup within one day.
- The paid membership program continued to drive positive contributions, with better-than-expected profitability and growth in the base of members.
- Despite the better-than-expected results, Best Buy Co Inc (BBY) updated its annual sales guidance to a decline in the range of 1.5% to 3%, reflecting ongoing challenges.
- Declines in key categories such as appliances, home theater, and gaming offset the growth in tablets, computing, and services.
- The promotional environment remains highly competitive, particularly in major appliances and TVs, which could impact profitability.
- The company expects comparable sales to be down approximately 1% in the third quarter, indicating continued challenges in the near term.
- Concerns about potential election-related impacts to demand in October and unpredictable consumer behavior during the holiday season.
Ladies and gentlemen, thank you for standing by. Welcome to Best Buy's second quarter fiscal 2025 earnings conference call. (Operator Instructions)
I'll now turn the conference call over to Mollie O'Brien, Vice President of Investor Relations.
Thank you, and good morning, everyone. Joining me on the call today are Corie Barry, our CEO; and Matt Bilunas, our CFO. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release, which is available on our website investors.bestbuy.com.
Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may address the financial condition, business initiatives, growth plans, investments and expected
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