Best Buy (BBY) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was $9.3 billion, down 3.1% year-over-year, with comparable sales declining 2.3% but showing sequential improvement from Q1.

• Non-GAAP and GAAP diluted EPS rose to $1.34, up 10% and 7% respectively, with net earnings of $291 million.

• Gross profit rate improved to 23.5% from 23.2% year-over-year, driven by better performance in services and membership offerings.

• Growth in tablets, computing, and services was offset by declines in appliances, home theater, and gaming.

• Online sales accounted for 32% of domestic revenue, with high fulfillment speed and in-store pickup rates.

Financial highlights

• Q2 revenue: $9.3B (down 3.1% year-over-year); comparable sales down 2.3%.

• Q2 net earnings: $291M; diluted EPS: $1.34; operating income: $383M (4.1% of revenue).

• Gross profit margin improved to 23.5%; operating income margin increased to 4.1%.

• Domestic revenue fell 3% to $8.62B; international revenue declined 4% to $665M.

• Non-GAAP SG&A dollars were $53M lower than last year, aided by a one-time $10M legal settlement.

Outlook and guidance

• FY25 revenue guidance updated to $41.3–$41.9B; comparable sales expected to decline 1.5%–3.0%.

• FY25 non-GAAP diluted EPS guidance raised to $6.10–$6.35; non-GAAP operating income rate to 4.1%–4.2%.

• Q3 comparable sales expected to be down ~1% year-over-year; August comps estimated to be flat.

• FY25 capital expenditures expected at $750M; $500M planned for share repurchases.

• Plans to close 10–15 domestic stores in FY25 as part of ongoing portfolio optimization.