BEST BUY CO INC [BBY] Filings

10-Q 1 bby-20240803x10q.htm 10-Q bby-20240803x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 3, 2024


	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-9595

A black text with a yellow tag

Description automatically generated

BEST BUY CO., INC.

(Exact name of registrant as specified in its charter)


Minnesota		41-0907483
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7601 Penn Avenue South
Richfield, Minnesota		55423
(Address of principal executive offices)		(Zip Code)

(612) 291-1000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.10 par value per share	BBY	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer 	Accelerated Filer 		Non-accelerated Filer 

Smaller Reporting Company 		Emerging Growth Company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

The registrant had 214,725,246 shares of common stock outstanding as of September 4, 2024.

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Table of Contents

BEST BUY CO., INC.

FORM 10-Q FOR THE QUARTER ENDED AUGUST 3, 2024

TABLE OF CONTENTS


Part I — Financial Information				3
Item 1.		Financial Statements		3
	a)	Condensed Consolidated Balance Sheets as of August 3, 2024, February 3, 2024, and July 29, 2023		3
	b)	Condensed Consolidated Statements of Earnings for the three and six months ended August 3, 2024, and July 29, 2023		4
	c)	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended August 3, 2024, and July 29, 2023		5
	d)	Condensed Consolidated Statements of Cash Flows for the six months ended August 3, 2024, and July 29, 2023		6
	e)	Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended August 3, 2024, and July 29, 2023		7
	f)	Notes to Condensed Consolidated Financial Statements		8
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		24
Item 4.		Controls and Procedures		24
Part II — Other Information				24
Item 1.		Legal Proceedings		24
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		25
Item 5.		Other Information		25
Item 6.		Exhibits		25
Signatures			26

WEBSITE AND SOCIAL MEDIA DISCLOSURE

We disclose information to the public concerning Best Buy, Best Buy’s products, content and services and other items through our websites in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through this channel may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.

For information concerning Best Buy and its products, content and services, please visit: https://bestbuy.com.

For information provided to the investment community, including news releases, events and presentations, and filings with the SEC, please visit: https://investors.bestbuy.com.

For the latest information from Best Buy, including press releases, please visit: https://corporate.bestbuy.com/archive/.

* These corporate websites, and the contents thereof, are not incorporated by reference into this Quarterly Report on Form 10-Q nor deemed filed with the SEC.

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Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

$ in millions, except per share amounts (unaudited)


	August 3, 2024		February 3, 2024		July 29, 2023
Assets
Current assets
Cash and cash equivalents	$	1,387	$	1,447	$	1,093
Receivables, net		871		939		856
Merchandise inventories		5,706		4,958		5,651
Other current assets		598		553		704
Total current assets		8,562		7,897		8,304
Property and equipment, net		2,183		2,260		2,305
Operating lease assets		2,860		2,758		2,813
Goodwill		1,383		1,383		1,383
Other assets		636		669		513
Total assets	$	15,624	$	14,967	$	15,318

Liabilities and equity
Current liabilities
Accounts payable	$	5,542	$	4,637	$	5,471
Unredeemed gift card liabilities		243		253		250
Deferred revenue		940		1,000		996
Accrued compensation and related expenses		347		486		377
Accrued liabilities		756		902		709
Current portion of operating lease liabilities		610		618		615
Current portion of long-term debt		13		13		15
Total current liabilities		8,451		7,909		8,433
Long-term operating lease liabilities		2,316		2,199		2,254
Long-term debt		1,157		1,152		1,145
Long-term liabilities		593		654		651
Contingencies (Note 10)
Equity
Best Buy Co., Inc. Shareholders' Equity
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none		-		-		-
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 215.0 million, 215.4 million and 217.9 million shares, respectively		22		22		22
Additional paid-in capital		-		31		-
Retained earnings		2,775		2,683		2,491
Accumulated other comprehensive income		310		317		322
Total equity		3,107		3,053		2,835
Total liabilities and equity	$	15,624	$	14,967	$	15,318

NOTE: The Consolidated Balance Sheet as of February 3, 2024, has been condensed from the audited consolidated financial statements.

See Notes to Condensed Consolidated Financial Statements.

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Table of Contents

Condensed Consolidated Statements of Earnings

$ and shares in millions, except per share amounts (unaudited)


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Revenue	$	9,288	$	9,583	$	18,135	$	19,050
Cost of sales		7,102		7,363		13,885		14,680
Gross profit		2,186		2,220		4,250		4,370
Selling, general and administrative expenses		1,810		1,879		3,547		3,727
Restructuring charges		(7)		(7)		8		(16)
Operating income		383		348		695		659
Other income (expense):
Gain on sale of subsidiary, net		-		21		-		21
Investment income and other		21		12		46		33
Interest expense		(13)		(12)		(25)		(24)
Earnings before income tax expense and equity in income of affiliates		391		369		716		689
Income tax expense		101		96		181		171
Equity in income of affiliates		1		1		2		-
Net earnings	$	291	$	274	$	537	$	518

Basic earnings per share	$	1.35	$	1.25	$	2.49	$	2.37
Diluted earnings per share	$	1.34	$	1.25	$	2.47	$	2.36

Weighted-average common shares outstanding:
Basic		216.0		218.6		216.1		218.7
Diluted		217.1		219.0		217.2		219.5

See Notes to Condensed Consolidated Financial Statements.

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Table of Contents

Condensed Consolidated Statements of Comprehensive Income

$ in millions (unaudited)


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Net earnings	$	291	$	274	$	537	$	518
Foreign currency translation adjustments, net of tax		(2)		5		(7)		-
Comprehensive income	$	289	$	279	$	530	$	518

See Notes to Condensed Consolidated Financial Statements.

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Table of Contents

Condensed Consolidated Statements of Cash Flows

$ in millions (unaudited)


	Six Months Ended
	August 3, 2024		July 29, 2023
Operating activities
Net earnings	$	537	$	518
Adjustments to reconcile net earnings to total cash provided by operating activities:
Depreciation and amortization		437		473
Restructuring charges		8		(16)
Stock-based compensation		74		75
Gain on sale of subsidiary, net		-		(21)
Other, net		12		2
Changes in operating assets and liabilities:
Receivables		66		289
Merchandise inventories		(761)		(508)
Other assets		(11)		(32)
Accounts payable		904		(206)
Income taxes		(183)		(148)
Other liabilities		(266)		(245)
Total cash provided by operating activities		817		181

Investing activities
Additions to property and equipment		(335)		(395)
Net proceeds from sale of subsidiary		-		14
Other, net		(17)		-
Total cash used in investing activities		(352)		(381)

Financing activities
Repurchase of common stock		(148)		(158)
Dividends paid		(405)		(402)
Other, net		(4)		-
Total cash used in financing activities		(557)		(560)

Effect of exchange rate changes on cash and cash equivalents		(3)		(2)
Decrease in cash, cash equivalents and restricted cash		(95)

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10-K	[2024-03-15]
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10-Q	[2023-06-02]
10-K	[2023-03-17]
10-Q	[2022-12-06]
10-Q	[2022-09-08]
10-Q	[2022-06-02]
10-K	[2022-03-18]
10-Q	[2021-12-03]
10-Q	[2021-08-31]
10-Q	[2021-06-04]
10-K	[2021-03-19]
10-Q	[2020-11-30]
10-Q	[2020-08-31]
10-Q	[2020-05-27]
10-K	[2020-03-23]
10-Q	[2019-12-06]
10-Q	[2019-09-06]
10-Q	[2019-06-07]
10-K	[2019-03-28]
10-Q	[2018-12-07]
10-Q	[2018-09-10]
10-Q	[2018-06-08]
10-K	[2018-04-02]
10-Q	[2017-12-01]
10-Q	[2017-09-05]
10-Q	[2017-06-05]
10-K	[2017-03-24]
10-Q	[2016-12-02]
10-Q	[2016-09-02]
10-Q	[2016-06-09]
10-K	[2016-03-23]
10-Q	[2015-12-04]
10-Q	[2015-09-04]
10-Q	[2015-06-08]
10-K	[2015-03-31]
10-Q	[2014-12-05]
10-Q	[2014-09-10]
10-Q	[2014-06-09]
10-K	[2014-03-28]
10-Q	[2013-12-09]
10-Q	[2013-09-09]
10-Q	[2013-06-07]
10-Q	[2012-12-05]
10-Q	[2012-09-06]
10-Q	[2012-06-13]
10-K	[2012-05-01]
10-Q	[2012-01-03]