Best Buy was hit hard by the supply chain in Q4! Both revenue and net profit declined!

It is learned that on March 3, Best Buy released its 2021Q4 quarterly financial report ending January 29. The financial report shows that Best Buy's revenue did not meet expectations due to supply chain shocks, soaring costs and Omicron variants. The following is a summary of the financial report:

• Revenue: $16.37 billion, down from $16.94 billion in the same period of 2020 and below the expected $16.6 billion

• Net income: down to $626 million, down from $816 million in the fourth quarter of 2020

• Sales: down 2.3%; up 12.6% in Q4 2020

• US market: revenue of US$14.99 billion, down 2.6% year-on-year

• International market: Revenue was US$1.4 billion, down 10.7% year-on-year, mainly due to the decrease in sales in the Canadian market and the closure of the Mexican market.

• Online sales in the U.S.: $5.91 billion, down 11.2% year-on-year, accounting for 39.4% of total sales, down from 43.2% in the same period last year

• EPS: Adjusted $2.73 vs. $2.73 expected

Despite a decline in sales in the fourth quarter of 2021, Best Buy's revenue has increased by $8.1 billion over the past two years, with revenue of $51.76 billion in 2021, up from $47.26 billion in fiscal 2020. The "last mile" delivery speed is also more than 25% faster than in the previous two years. Best Buy expects revenue of between $49.3 billion and $50.8 billion in fiscal 2022, lower than analysts' expectations of $51.05 billion.

It is learned that due to supply chain problems, Best Buy had expected that limited inventory would affect the sales of electrical appliances, games and mobile phones, but the actual shortage was more serious than expected. Therefore, the sales of gaming equipment, mobile phones and tablets in the US market declined due to supply and demand, but comparable sales increased by 10.4%; the stock price rose by 9%.

Best Buy said that the best-selling products in the fourth quarter of 2021 were appliances, VR equipment, home theaters, and headphones. Americans' demand for televisions also soared during the 2022 Beijing Winter Olympics. In addition, demand for appliances, VR equipment, and headphones continued to rise. It is expected that 5G mobile phones will usher in strong demand by the end of 2022.

Editor ✎Estella/

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