Latest news with #BestBuyCo.
Yahoo
29-05-2025
- Business
- Yahoo
Best Buy Beats Q1 Earnings Estimates, Cuts FY26 Guidance on Tariffs
Best Buy Co., Inc. BBY reported first-quarter fiscal 2026 results, wherein revenues were in line with the Zacks Consensus Estimate and earnings surpassed expectations. However, both metrics declined year over year, and enterprise comparable sales also fell. The company revised its full-year guidance downward, citing the impact of these challenges, Best Buy remains committed to its strategic roadmap, which focuses on elevating the omnichannel experience of customers, scaling revenue streams, such as its Best Buy Marketplace and Best Buy Ads, and boosting operational efficiency to fund long-term investments and offset external pressures. Adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of $1.09. However, the bottom line fell from $1.20 per share reported in the year-ago period. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Enterprise revenues came in at $8,767 million, almost in line with the consensus mark of $8,766 million but fell 0.9% from the prior-year quarter's figure of $8,847 million. Enterprise comparable sales decreased 0.7% year over profit dropped 0.7% to $2,049 million, while the gross margin expanded 10 basis points (bps) to 23.4%. We had projected an adjusted gross margin expansion of 20 bps. Adjusted operating income was $333 million, flat compared with the year-ago quarter. The adjusted operating margin of 3.8% also remained even with the prior year period. We had expected the adjusted operating margin to shrink 40 basis selling, general and administrative (SG&A) expenses were $1,716 million, down 0.9% year over year. Adjusted SG&A, as a percentage of revenues, remained flat at 19.6%. We had estimated adjusted SG&A expenses to deleverage 60 bps. Best Buy Co., Inc. price-consensus-eps-surprise-chart | Best Buy Co., Inc. Quote Domestic revenues of $8,127 million fell 0.9% year over year due to a comparable sales decline of 0.7%, which came in line with our expectations. The decline in comparable sales was owing to weaker performance in home theater, appliances, and drones. This was partially offset by growth in computing, mobile phones, and online revenues were $2.58 billion, reflecting a 2.1% increase on a comparable basis. Online sales accounted for 31.7% of total domestic revenues, up from 30.8% in the year-ago period. The domestic gross margin expanded 10 basis points to 23.5%. The increase was driven by stronger performance in the services segment, including its membership offerings. This was partly offset by margin pressure in the Best Buy Health segment and reduced profit-sharing revenues from the company's private label and co-branded credit card arrangement. The segment's adjusted operating income was $329 million, up from $325 million recorded last year. As a percentage of revenues, the metric remained flat at 4%.International revenues of $640 million fell 0.6% year over year due to a negative foreign currency impact of about 450 basis points and a comparable sales decline of 0.7%. We had projected a comparable sales decline of 0.1%. The decline in revenue was largely offset by contributions from Best Buy Express locations in Canada. International gross margin contracted 80 basis points to 22%, primarily due to lower product margin rates and increased supply chain costs. The segment's adjusted operating income was $4 million, down from $8 million recorded in the year-ago quarter. As a percentage of revenues, the metric contracted 60 bps year over year to 0.6%. Best Buy ended the quarter with cash and cash equivalents of $1,147 million, long-term debt of $1,153 million, and a total equity of $2,763 the quarter under review, the company returned $302 million to shareholders, comprising $202 million in dividends and $100 million in share repurchases. The company plans to allocate $300 million for share repurchases in fiscal 2026. For the second quarter, BBY expects comparable sales to be marginally down from the year-ago period, with an adjusted operating margin of 3.6%.Management updated its fiscal 2026 view, and now expects revenues between $41.1 billion and $41.9 billion, slightly below the prior estimated range of $41.4 billion to $42.2 billion. BBY also revised its comparable sales forecast to a range of down 1% to up 1% compared with the earlier guidance of flat to 2% now foresees adjusted operating margin to be approximately 4.2% compared with the prior guided range of 4.2% to 4.4%. Best Buy now envisions adjusted earnings per share to fall between $6.15 and $6.30, slightly lower than the earlier range of $6.20 to $6.60. Capital expenditures are projected at around $700 million compared with the previous estimate of $700 million to $750 of this Zacks Rank #4 (Sell) company have plunged 25.2% in the past three months compared with the industry's decline of 17.4%. Urban Outfitters, Inc. URBN, which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, currently sports a Zacks Rank #1 (Strong Buy). URBN has a trailing four-quarter earnings surprise of 29%, on average. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Urban Outfitters' current financial-year sales and earnings implies growth of 8% and 20.9%, respectively, from the year-ago reported Inc. GCO, a footwear-focused company, currently carries a Zacks Rank #2 (Buy). GCO has a trailing four-quarter earnings surprise of 37.2%, on average. The Zacks Consensus Estimate for Genesco's current financial-year sales and earnings calls for growth of 0.6% and 63.8%, respectively, from the year-ago reported Brands, Inc. KTB, a global lifestyle apparel company, carries a Zacks Rank #2. KTB has a trailing four-quarter earnings surprise of 8.1%, on average. The Zacks Consensus Estimate for Kontoor Brands' current financial-year sales and earnings suggests growth of 1.1% and 9.6%, respectively, from the year-ago reported numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
What Are the Contributing Risks to Best Buy Co.'s (BBY) Supply Chain?
Artisan Partners, an investment management company, released its 'Artisan Mid Cap Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund's Investor Class fund ARTMX returned -7.40%, Advisor Class fund APDMX posted a return of -7.37%, and Institutional Class fund APHMX returned -7.35%, compared to a -7.12% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. After a period of strong growth stock performance in 2023 and 2024, value stocks gained the lead in Q1 2025. In a risk-averse environment, investors shifted towards lower-volatility equities, especially in the utilities and consumer staples sectors, alongside those with higher dividend yields. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Best Buy Co., Inc. (NYSE:BBY). Best Buy Co., Inc. (NYSE:BBY) is a specialty retail company that engages in the consumer technology products and services. The one-month return of Best Buy Co., Inc. (NYSE:BBY) was 10.50%, and its shares lost 9.06% of their value over the last 52 weeks. On May 5, 2025, Best Buy Co., Inc. (NYSE:BBY) stock closed at $67.66 per share with a market capitalization of $14.323 billion. Artisan Mid Cap Fund stated the following regarding Best Buy Co., Inc. (NYSE:BBY) in its Q1 2025 investor letter: "We ended our investment campaigns in Illumina, Best Buy Co., Inc. (NYSE:BBY) and Datadog during the quarter. Best Buy is the largest US consumer electronics retailer, with more than 1,000 stores. Our thesis was driven by the company's most important segment (computing and mobile) returning to growth, catalyzed by a long-awaited product replacement cycle, especially as consumers upgrade to offerings with embedded AI functionality. While we saw some recent this playing out, escalating tariff policies create meaningful risk to the company's supply chain. We exited the position." Jim Cramer Once Backed Best Buy (BBY) - Here's Why His Trust Later Sold the Stock A busy retail store showcasing a wide range of consumer electronics. Best Buy Co., Inc. (NYSE:BBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Best Buy Co., Inc. (NYSE:BBY) at the end of the fourth quarter compared to 37 in the third quarter. While we acknowledge the potential of Best Buy Co., Inc. (NYSE:BBY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Yahoo
01-05-2025
- Business
- Yahoo
At US$66.69, Is It Time To Put Best Buy Co., Inc. (NYSE:BBY) On Your Watch List?
Let's talk about the popular Best Buy Co., Inc. (NYSE:BBY). The company's shares saw a decent share price growth of 19% on the NYSE over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's examine Best Buy's valuation and outlook in more detail to determine if there's still a bargain opportunity. We've discovered 2 warning signs about Best Buy. View them for free. The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Best Buy's ratio of 15.21x is trading slightly above its industry peers' ratio of 15.04x, which means if you buy Best Buy today, you'd be paying a relatively reasonable price for it. And if you believe that Best Buy should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. Although, there may be an opportunity to buy in the future. This is because Best Buy's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Check out our latest analysis for Best Buy Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Best Buy's earnings over the next few years are expected to increase by 59%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in BBY's positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at BBY? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on BBY, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for BBY, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 2 warning signs for Best Buy and we think they deserve your attention. If you are no longer interested in Best Buy, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Bloomberg
24-04-2025
- Business
- Bloomberg
Nintendo Switch 2 Preorders Quickly Sell Out at US Stores
US retailers began taking preorders for Nintendo Co. 's new Switch 2 console as early as midnight on Thursday and quickly sold out at many locations. Orders for the $450 devices, which will be released on June 5, are no longer available on the Walmart Inc., Best Buy Co. and Target Corp. websites. Target had sent some customers in its database an email on Wednesday alerting them to the sale.
Yahoo
10-04-2025
- Automotive
- Yahoo
Jim Cramer Once Backed Best Buy (BBY) – Here's Why His Trust Later Sold the Stock
We recently published a list of . In this article, we are going to take a look at where Best Buy Co., Inc. (NYSE:BBY) stands against other stocks that Jim Cramer discussed 1 year ago. On Tuesday, April 1 , the host of Mad Money opened the show by focusing on President Trump's tariffs and the economic risks ahead of 'Liberation Day'. While Cramer expressed sympathy for the President's goals, he warned viewers that the consequences could be severe for both consumers and the broader economy: 'Now as someone who's been a huge critic of unrestrained free trade, I am very sympathetic to what President Trump is trying to accomplish with these tariffs. Every other country on earth tries to protect its own domestic industries except America which has spent decades letting foreign competitors steamroll our guys in exchange for cheaper stuff. President Trump is justifiably furious about this he wants to do something about it but solving the problem is going to hurt. We don't know how much our prices will go up for just about everything, but we do know those tariffs will be used as an excuse to raise prices across the board. It's been very hard to get a sense of the overall damage.' READ ALSO: , and . But despite understanding the motivation behind the policy, Cramer was blunt about the scale of economic disruption that a proposed 20% tariff on all imports would cause: 'Speaking as someone who's not a fan of free trade I have to be honest here, a 20% across the board tariff on almost all imports that would be horrendous for the economy. That's a 20% increase on everything we buy from overseas and we import a huge amount of foreign goods in America, and those goods are cheap because that's the deal. There's plenty of competition from these companies but with the exception of the auto industry and those that contribute to it -mainly steel – it doesn't matter anymore. The truth is the jobs that are meant to be protected by tariffs were automated out of existence a long time ago.' Cramer mentioned that even the industries that stand to benefit in theory, like autos and steel, aren't necessarily helping the average American: 'The tariffs aren't protecting us from anything because we barely make anything anymore. The horses left the barn ages ago. Ford and GM will be able to make more money by raising prices but who does that help besides their shareholders and union members? What's good for General Motors is not necessarily good for America anymore. All people know is that cars will be more expensive; they don't care about who makes them.' He also criticized the administration's execution, calling out the lack of clarity and coordination behind the policy rollout and questioning whether any American companies will actually be spared from the impact: 'I wish the White House were more serious about making the tariffs work. Our country's been crushed by foreign imports that are typically made by cheap labor and often subsidized so they destroy our jobs. But the jobs are gone. We had almost a million seamstresses in this country four decades ago now we have almost none; they aren't bringing back those jobs. Sure, some companies thought they'd be buying immunity by building new factories here, but there's nothing on paper that suggests that the president will spare them. Is there really no sanctuary?' Wrapping up the opening segment, Cramer reminded viewers that while many Americans may support a 'tough-on-trade' agenda, their real fear is inflation; and it's inflation that the tariffs will likely exacerbate: 'Finally, most Americans are worried about inflation; not tariffs. That's what got Trump elected for heaven's sake. As much as I rail against the devil's bargain that gave our country the cheap stuff at the cost of domestic jobs, cheap stuff is what America wanted. […] Here's the bottom line when the book is written on this moment I think we'll question what we were liberated from on Liberation Day and again I think Trump is totally justified in cracking down on our trading partners but that doesn't mean it will be good for the economy.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during Mad Money episodes that aired 1 year ago between April 5 and April 12. We then calculated their performance for the past 12 months, until April 2nd, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A busy retail store showcasing a wide range of consumer Buy Co., Inc. (NYSE:BBY) is one of the largest electronics and appliance retailers in the U.S., with a strong footprint in both brick-and-mortar and online sales. Cramer was bullish on the stock when a caller asked him about it last year, pointing to a coming wave of PC upgrades and a reliable dividend as reasons to buy at the time. 'Okay, Best Buy. I like Best Buy because I believe we're going to see a radical refresh of PCs come this fall, and it's well, actually, it's going to start in July, and people aren't focusing on this. They're making a big mistake. The PC refresh cycle is going to drive Best Buy higher. Meantime, you're going to be protected by the yield.' The stock has since fallen 21.5%, as consumer interest in big-ticket tech items faded and the expected PC boom never really showed up. However, Jim Cramer recently admitted that his charitable trust has sold its holdings in the stock and explained the reasons behind the price drop. Here are his comments from March 21st: 'Of course, I want to be empirical here. Some industries will be hurt badly because they have a huge concentration of products from overseas. We sold our Best Buy for the Charitable Trust because of the tariffs.' Overall, BBY ranks 10th on our list of stocks that Jim Cramer discussed 1 year ago. While we acknowledge the potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BBY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
