Best Buy Co. Inc. (BBY, Financial) filed Quarterly Report for the period ended 2008-11-29.
Best Buy operates in a single business segment selling personal computers and other home office products consumer electronics entertainment software major appliances and related accessories principally through its retail stores. They operate retail stores and commercial Websites under the brand names Best Buy Media Play On Cue Sam Goody Suncoast Magnolia Hi-Fi and Future Shop. They also operate in three segments: Best Buy Musicland and International. Best Buy Co. Inc. has a market cap of $11.01 billion; its shares were traded at around $29.65 with a P/E ratio of 9.2 and P/S ratio of 0.28. The dividend yield of Best Buy Co. Inc. stocks is 2.1%. Best Buy Co. Inc. had an annual average earning growth of 24% over the past 10 years. GuruFocus rated Best Buy Co. Inc. the business predictability rank of 4.5-star.
Net earnings were $52 million, or $0.13 per diluted share, in the third quarter of fiscal 2009, compared with $228 million, or $0.53 per diluted share, in the same period one year ago. In the first nine months of fiscal 2009, net earnings were $433 million, or $1.04 per diluted share, compared with $670 million, or $1.47 per diluted share, in the same period one year ago.
Revenue in the third quarter of fiscal 2009 increased 16% to $11.5 billion, compared with $9.9 billion in the same period one year ago. In the first nine months of fiscal 2009, revenue increased 14% to $30.3 billion, compared with $26.6 billion in the same period one year ago. In the third quarter of fiscal 2009, excluding the acquisition of Best Buy Europe, which contributed $1.7 billion of revenue in the fiscal third quarter, revenue declined modestly. The net addition of 181 new stores in the past 12 months was more than offset by the comparable store sales decline and the unfavorable effect of fluctuations in foreign currency exchange rates. For the first nine months of fiscal 2009, excluding the acquisition of Best Buy Europe, which contributed $1.7 billion of revenue in the first nine months of fiscal 2009, the net addition of new stores in the past 12 months accounted for approximately nine-tenths of the revenue increase. The remainder of the revenue increase was primarily due to a modest comparable store sales gain as well as the favorable effect of fluctuations in foreign currency exchange rates during the first half of fiscal 2009.
Our investment (loss) income and other in the third quarter of fiscal 2009 decreased to ($3) million, compared with $32 million in the same period one year ago. Our investment income and other in the first nine months of fiscal 2009 decreased to $27 million, compared with $98 million in the same period one year ago. In both the third quarter and first nine months of fiscal 2009, the lower investment (loss) income and other was due primarily to lower average cash and investments balances related to $3.5 billion of share repurchases made in the prior fiscal year, as well as our acquisition of Best Buy Europe in the second quarter of fiscal 2009. In addition, lower interest rates also contributed to the lower investment (loss) income and other in both the third quarter and first nine months of fiscal 2009.
Our interest expense in the third quarter of fiscal 2009 increased by $12 million to $35 million, compared with $23 million in the same period one year ago. The increase was due primarily to higher debt balances, partially offset by the benefit of lower interest rates. Our interest expense in the first nine months of fiscal 2009 increased $16 million to $69 million, compared with $53 million in the same period one year ago. The increase was due primarily to higher debt balances in the first nine months of fiscal 2009, partially offset by the benefit of lower interest rates.
Our Domestic segments operating income in the third quarter of fiscal 2009 was $283 million, or 3.5% of revenue, compared with $329 million, or 4.0% of revenue, in the same period one year ago. In the first nine months of fiscal 2009, our Domestic segments operating income was $875 million, or 3.7% of revenue, compared with $957 million, or 4.3% of revenue, in the same period one year ago. The decrease in our Domestic segments operating income in the third quarter of fiscal 2009 reflected an increase in our SG&A expense rate, partially offset by an increase in our gross profit rate. In the first nine months of fiscal 2009, the decrease in our Domestic segments operating income reflected an increase in our SG&A expense rate, partially offset by an increase in revenue.
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10-year financial history of BBY.
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Best Buy operates in a single business segment selling personal computers and other home office products consumer electronics entertainment software major appliances and related accessories principally through its retail stores. They operate retail stores and commercial Websites under the brand names Best Buy Media Play On Cue Sam Goody Suncoast Magnolia Hi-Fi and Future Shop. They also operate in three segments: Best Buy Musicland and International. Best Buy Co. Inc. has a market cap of $11.01 billion; its shares were traded at around $29.65 with a P/E ratio of 9.2 and P/S ratio of 0.28. The dividend yield of Best Buy Co. Inc. stocks is 2.1%. Best Buy Co. Inc. had an annual average earning growth of 24% over the past 10 years. GuruFocus rated Best Buy Co. Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
· Net earnings in the third quarter of fiscal 2009 were $52 million, or $0.13 per diluted share, compared with $228 million, or $0.53 per diluted share, in the same period one year ago.Net earnings were $52 million, or $0.13 per diluted share, in the third quarter of fiscal 2009, compared with $228 million, or $0.53 per diluted share, in the same period one year ago. In the first nine months of fiscal 2009, net earnings were $433 million, or $1.04 per diluted share, compared with $670 million, or $1.47 per diluted share, in the same period one year ago.
Revenue in the third quarter of fiscal 2009 increased 16% to $11.5 billion, compared with $9.9 billion in the same period one year ago. In the first nine months of fiscal 2009, revenue increased 14% to $30.3 billion, compared with $26.6 billion in the same period one year ago. In the third quarter of fiscal 2009, excluding the acquisition of Best Buy Europe, which contributed $1.7 billion of revenue in the fiscal third quarter, revenue declined modestly. The net addition of 181 new stores in the past 12 months was more than offset by the comparable store sales decline and the unfavorable effect of fluctuations in foreign currency exchange rates. For the first nine months of fiscal 2009, excluding the acquisition of Best Buy Europe, which contributed $1.7 billion of revenue in the first nine months of fiscal 2009, the net addition of new stores in the past 12 months accounted for approximately nine-tenths of the revenue increase. The remainder of the revenue increase was primarily due to a modest comparable store sales gain as well as the favorable effect of fluctuations in foreign currency exchange rates during the first half of fiscal 2009.
Our investment (loss) income and other in the third quarter of fiscal 2009 decreased to ($3) million, compared with $32 million in the same period one year ago. Our investment income and other in the first nine months of fiscal 2009 decreased to $27 million, compared with $98 million in the same period one year ago. In both the third quarter and first nine months of fiscal 2009, the lower investment (loss) income and other was due primarily to lower average cash and investments balances related to $3.5 billion of share repurchases made in the prior fiscal year, as well as our acquisition of Best Buy Europe in the second quarter of fiscal 2009. In addition, lower interest rates also contributed to the lower investment (loss) income and other in both the third quarter and first nine months of fiscal 2009.
Our interest expense in the third quarter of fiscal 2009 increased by $12 million to $35 million, compared with $23 million in the same period one year ago. The increase was due primarily to higher debt balances, partially offset by the benefit of lower interest rates. Our interest expense in the first nine months of fiscal 2009 increased $16 million to $69 million, compared with $53 million in the same period one year ago. The increase was due primarily to higher debt balances in the first nine months of fiscal 2009, partially offset by the benefit of lower interest rates.
Our Domestic segments operating income in the third quarter of fiscal 2009 was $283 million, or 3.5% of revenue, compared with $329 million, or 4.0% of revenue, in the same period one year ago. In the first nine months of fiscal 2009, our Domestic segments operating income was $875 million, or 3.7% of revenue, compared with $957 million, or 4.3% of revenue, in the same period one year ago. The decrease in our Domestic segments operating income in the third quarter of fiscal 2009 reflected an increase in our SG&A expense rate, partially offset by an increase in our gross profit rate. In the first nine months of fiscal 2009, the decrease in our Domestic segments operating income reflected an increase in our SG&A expense rate, partially offset by an increase in revenue.
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Gurus who own BBY
BBY is in the portfolios of Bill Nygren, John Hussman, Bill Nygren, John Hussman, George Soros, PRIMECAP Management. More on BBY:Gurus buys and sells of BBY
10-year financial history of BBY.
Insider buys/sells of BBY.
