Best Buy Co., Inc. has recently released its 10-K report, providing a detailed look at the company's financial performance and operations. The retail giant, headquartered in Richfield, Minnesota, is primarily engaged in the retail of technology products in the United States, Canada, and internationally. Its stores offer a wide range of products, including computing and mobile phone products, consumer electronics, appliances, entertainment products, and more. Best Buy also provides various services such as delivery, installation, repair, and technical support.
In the fiscal year ended February 3, 2024, Best Buy reported revenue of $43.5 billion, representing a 6.1% decrease compared to the previous year. The company's comparable sales, a key metric used to evaluate the performance of its existing stores, websites, and call centers, declined by 6.8% during the same period. The gross profit margin was reported at 22.1% of revenue, while the selling, general, and administrative expenses accounted for 18.1% of revenue. Best Buy's operating income for the fiscal year was $1.57 billion, representing 3.6% of total revenue.
The company's Domestic segment, which includes operations in the U.S. and Best Buy Health business, reported revenue of $40.1 billion in fiscal 2024, with online sales accounting for 32.7% of the total segment revenue. The Domestic segment's operating income was $1.47 billion, representing 3.7% of its revenue. However, the segment experienced declines in home theater, large appliances, computing, and mobile phone sales, partially offset by growth in gaming hardware sales. Online revenue decreased by 7.8% on a comparable basis during the fiscal year.
Looking ahead, Best Buy highlighted its focus on adapting its omnichannel capabilities to maintain a leading position in an increasingly digital age and evolving retail landscape. The company also emphasized its plan to invest in existing store updates and refreshes in fiscal 2025, aiming to provide the experience that customers expect when visiting its stores. Additionally, Best Buy reported approximately seven million paid members by the end of fiscal 2024, with paid members showing higher levels of interaction and spend at Best Buy compared to non-members.
Despite facing macro pressures impacting the retail and consumer electronics industries, Best Buy expressed optimism about fiscal 2025, expecting increasing industry stabilization as consumer spending on technology products is anticipated to rise. The company's strategy for the upcoming year focuses on sharpening customer experiences and industry positioning while maintaining or expanding profitability.
For more information, read the company's full 10-K submission here.
