Best Buy's Q4 revenue of $14.65 billion exceeded expectations, but it warned of layoffs

It is learned that on February 29, Best Buy, the US consumer electronics retail giant, announced its fourth quarter and full-year financial results for fiscal year 2024. Thanks to strong sales of large items during the holiday season and an increase in the number of paid members, Best Buy's revenue exceeded expectations.

The financial report shows that Best Buy's Q4 revenue fell 0.6% year-on-year to US$14.65 billion, slightly better than the market expectation of US$14.56 billion; net profit was US$460 million, down 7% year-on-year; adjusted earnings per share was US$2.72, higher than US$2.61 in the same period last year, and better than the market expectation of US$2.61.

In the fourth quarter, Best Buy's gross profit was $3.001 billion, up from $2.940 billion in the same period last year; its gross profit margin was 20.5%, also higher than 20.0% in the same period last year. However, its operating profit was $561 million, slightly lower than $597 million in the same period last year; its operating profit margin was 3.8%, also slightly lower than 4.1% in the same period last year.

By business, Best Buy's US business revenue was $13.41 billion, down 0.9% year-on-year, mainly due to a 5.1% year-on-year decline in comparable sales, with the largest declines in comparable sales of appliances, mobile phones, tablets and home theaters. Its international business revenue was $1.236 billion, up 2.7% year-on-year, and comparable sales fell slightly by 1.4% year-on-year.

For the full year, Best Buy's revenue in fiscal 2024 was US$43.452 billion, a year-on-year decrease of 6.15%; net profit was US$1.241 billion, a year-on-year decrease of 12.54%; adjusted earnings per share was US$6.37, down from US$7.08 in the same period last year.

Best Buy CEO Corie Barry noted that strong service revenue, including sales growth of annual membership plans, home installation and repair fees, offset the impact of weak demand for new products, and this growth trend will continue in the future.

It is reported that Best Buy's paid membership service "My Best Buy" has two levels of fees, $179.99 per year and $49.99 per year. As of the end of this fiscal year, the number of "My Best Buy" member subscribers exceeded 7 million.

Although revenue and profit beat market expectations, Best Buy warned that sales this year will be sluggish due to weak demand for consumer electronics, and the company also said it would lay off employees and cut other business costs.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.