BEST BUY CO INC has recently released its latest 10-Q report. Best Buy Co., Inc. sells technology products and related services in the United States, Canada and other markets, with merchandise spanning computing and mobile phones, consumer electronics, appliances, entertainment products and other categories. The company also provides delivery, installation, repair, technical support, memberships, marketplace commissions and warranty-related services through stores and websites under brands including Best Buy, Geek Squad, Best Buy Business, Best Buy Health, My Best Buy and Yardbird.
In Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Best Buy said its first quarter of fiscal 2027 produced $8.936 billion in revenue, up 1.9% from $8.767 billion a year earlier. Comparable sales increased 2.0%, led by gaming and computing and mobile phones, while major appliances declined. Gross profit rose to $2.102 billion from $2.049 billion, and gross margin edged up to 23.5% from 23.4%.
Selling, general and administrative expense increased to $1.741 billion from $1.721 billion, but SG&A as a percentage of revenue improved slightly to 19.5% from 19.6%. Operating income climbed to $370 million from $219 million, helped by lower restructuring charges; the company recorded a $9 million reduction in restructuring charges versus $109 million a year earlier. Net earnings rose to $276 million from $202 million, and diluted EPS increased to $1.31 from $0.95.
Best Buy’s store count fell to 1,065 from 1,108 a year earlier. Domestic stores totaled 924, down from 951, while International stores declined to 141 from 157, including a drop in Canada Best Buy Mobile stand-alone stores to 12 from 29. The company said it expects to add four Domestic Best Buy stores by the end of fiscal 2027.
Income tax expense increased to $102 million from $19 million, and the effective tax rate rose to 26.9% from 8.6%. Best Buy said the higher tax rate reflected prior-year discrete tax impacts tied to restructuring charges and the exit of a component of its Best Buy Health business, along with higher pre-tax income. Following these announcements, the company's shares moved 0.78%, and are now trading at a price of $71.54. If you want to know more, read the company's complete 10-Q report here.
