Research Reports

Prepared Highlights

Enterprise revenue of $8.8B, down 0.9% YoY (prepared).
Domestic revenue $8.1B, down 0.9%; International revenue $640M, down 0.6% (prepared).
Domestic comparable sales declined 0.7%; growth in computing, mobile phones, tablets offset by declines in home theater, appliances, drones (CEO).
Computing & tablets combined comparable sales growth of 6% (CEO).
Online sales ~32% of total domestic sales, slightly higher mix YoY; ~60% of online purchases delivered/available for pickup within one day (CEO).
Adjusted operating income rate 3.8%, flat YoY; ~40 bps better than expected due to favorable SG&A (CFO).
Adjusted EPS $1.15, down 4% YoY; lower investment income (~$10M) due to lower cash balance and interest rates (CFO).
Gross profit rate domestic 23.5% (+10 bps YoY); international 22.0% (-80 bps YoY) (CFO).
Restructuring charges $109M in Q1, primarily from Best Buy Health (CFO).
Shareholder returns $302M in Q1: $202M dividends, $100M share repurchases (CFO).
China COGS estimated at 30%-35% of product COGS (down from 55% in March); US & Mexico combined ~25% (CEO).
Tariff scenarios: Mexico products (TVs, appliances) USMCA-compliant, no tariffs; China categories under Section 232 (computers, phones, etc.) subject to 20% fentanyl tariff; other China categories subject to 20% fentanyl + 10% baseline; products from Vietnam, India, South Korea, Taiwan subject to 10% tariff (CEO).
Best Buy directly imports only ~2%-3% of overall assortment (CEO).
Inventory strategy ~60 days forward supply; inventory levels feel good for back-to-school (CEO).
Marketplace seller count exceeded full-year goal; expect at least 500 sellers onboarded for mid-year launch (CEO).
Best Buy Ads added 20 new vendor advertisers in Q1; went live with The Trade Desk; launched Social+ with Meta (CEO).
CapEx ~$700M (low end of prior guidance) (CFO).
Share repurchases expected ~$300M for full year (CFO).

Official Guidance (Fiscal 2026)

Revenue: $41.1B – $41.9B (prepared).
Comparable sales: down 1% to up 1% (CEO).
Adjusted operating income rate: ~4.2% (CEO).
Adjusted effective income tax rate: ~25% (unchanged) (CFO).
Adjusted diluted EPS: $6.15 – $6.30 (CFO).
CapEx: ~$700M (CFO).
Q2 comparable sales: slightly down YoY; Q2 adjusted operating income rate: ~3.6% (CFO).

Mgmt Quotes

"We executed well in Q1 and delivered better than expected profitability." (CEO)
"We currently estimate the percentage of product COGS [China] represents is approximately 30% to 35% compared to the 55% metric we shared in March." (CEO)
"Due to mitigation efforts by both vendors and by Best Buy, the increased product costs that are flowing to us are lower than the tariff rates." (CEO)
"We have already exceeded the seller count goal we set for the entire year. We expect to have at least 500 of them onboarded and ready for the initial mid-year launch." (CEO)
"Our guidance includes our best estimate of the range of financial impacts from tariffs... anchoring our guidance to the current tariff rates felt most appropriate." (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Enterprise Revenue	$8.8B	Q1 actual (prepared)
Domestic Revenue	$8.1B	Q1 actual (prepared)
International Revenue	$640M	Q1 actual (prepared)
Domestic Comparable Sales	-0.7%	Q1 actual (prepared)
Enterprise Comparable Sales	-0.7%	Q1 actual (prepared)
Adjusted Operating Income Rate	3.8%	Q1 actual (prepared)
Adjusted Diluted EPS	$1.15	Q1 actual (prepared)
Domestic Gross Profit Rate	23.5%	Q1 actual, +10 bps YoY (CFO)
International Gross Profit Rate	22.0%	Q1 actual, -80 bps YoY (CFO)
Online Sales % of Domestic	~32%	Q1 actual (CEO)
Shareholder Returns (Q1)	$302M	Dividends $202M + buybacks $100M (CFO)
Restructuring Charges (Q1)	$109M	Primarily Best Buy Health (CFO)
FY26 Revenue Guidance	$41.1B – $41.9B	Full year (CFO)
FY26 Comparable Sales Guidance	-1% to +1%	Full year (CEO)
FY26 Adjusted Operating Income Rate	~4.2%	Full year (CEO)
FY26 Adjusted Diluted EPS	$6.15 – $6.30	Full year (CFO)
FY26 CapEx	~$700M	Full year (CFO)
FY26 Share Repurchases	~$300M	Full year (CFO)
Q2 Comparable Sales	Slightly down YoY	Q2 guidance (CFO)
Q2 Adjusted Operating Income Rate	~3.6%	Q2 guidance (CFO)