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美国

证券和交易委员会

华盛顿特区 20549

表格10-Q

(标记一)

根据1934年证券交易法第13或15(d)条,本季度报告

截至季度结束日期的财务报告2024年11月2日

或者

根据1934年证券交易法第13或15(d)条的转型报告

过渡期从            到            

委托文件编号:001-398661-9595

  A black text with a yellow tag

Description automatically generated

贝斯特购买公司

(根据其章程规定的注册人准确名称)

明尼苏达

41-0907483

(设立或组织的其他管辖区域)

(纳税人识别号码)

7601潘恩大道南

里奇菲尔德, 明尼苏达

55423

(主要行政办公室地址)

(邮政编码)

(612) 291-1000

(注册人电话号码,包括区号)

不适用

(前名称、地址及财政年度,如果自上次报告以来有更改)

在法案第12(b)条的规定下注册的证券:

每个类别的标题

交易标的

登记的交易所名称

普通股,每股面值0.10美元

BBY

纽约证券交易所

请勾选注册人是否:(1) 在过去12个月内(或在注册人被要求提交此类报告的较短期间内)已提交根据1934年证券交易法第13条或15(d)条款要求提交的所有报告,及(2) 在过去90天内一直遵守此类提交要求。

请勾选注册人是否在过去12个月内(或在注册人被要求提交此类文件的较短期间内)已电子提交根据规则405的互动数据文件(本章节第232.405条)。

请勾选此项,指示注册人是否为大型加速申报人、加速申报人、非加速申报人、小型报告公司或新兴增长公司。有关“大型加速申报人”、“加速申报人”、“小型报告公司”和“新兴增长公司”的定义,请参见《交易法规1.2》条。

大型加速存取器

加速审核员

非加速申报人

小型报告公司

新兴成长型企业

如果是新兴成长型公司,请通过勾选表示公司选择放弃使用依据《证券交易法》第13(a)节规定提供的任何新的或修改后的财务会计准则的延长过渡期来符合该规定的计划。

请通过勾选方式指明注册人是否为壳公司(如《交易法》第120亿.2条所定义)。 是的

截至2024年5月17日,申报人共有 213,795,603 截至2024年12月4日,流通的普通股数量为分享。 



目录

百思买公司

截至2024年11月2日的季度10-Q表格

目录目录

第一部分 - 基本报表

3

项目1。

基本报表

3

a)

截至2024年11月2日、2024年2月3日和2023年10月28日的合并资产负债表

3

b)

截至2024年11月2日和2023年10月28日的三个月和九个月的简化合并收益报表

4

c)

截至2024年11月2日和2023年10月28日的三个月和九个月的简化合并全面收益报表

5

d)

截至2024年11月2日和2023年10月28日的九个月的简化合并现金流量报表

6

e)

截至2024年11月2日和2023年10月28日的三个月和九个月的简化合并股东权益变动报表

7

f)

附注至简明合并财务报表

8

项目2。

分销计划

15

项目3。

有关市场风险的定量和定性披露

24

项目4。

控制和程序

25

第二部分 - 其他信息

25

项目1。

法律程序

25

项目2。

未注册的股票股权销售和筹款用途

25

项目5。

其他信息

26

项目6。

展示资料

26

签名

27

网站和社交媒体披露

我们通过我们的网站向公众披露有关百思买、百思买的产品、内容和服务以及其他项目的信息,以实现信息的广泛、非排他性分发。通过此渠道分发的信息中的一些可能被视为重要信息。我们鼓励投资者和其他人查看我们在下面位置公开的信息。* 此列表可能会不时更新。

有关百思买及其产品、内容和服务的信息,请访问:https://bestbuy.com。

有关投资社区的信息,包括资讯发布、活动和演示以及向SEC提交的文件,请访问: https://investors.bestbuy.com.

有关百思买的最新信息,包括新闻稿,请访问:https://corporate.bestbuy.com/archive/。

* 这些公司网站及其内容不被纳入本季度10-Q表格报告,也不被视为向SEC提交的文件。


2


目录

第一部分 — 财务信息

 

项目1。财务报表

 

精简的综合损益表调整后的资产负债表

以百万美元为单位,除每股金额外(未经审计)

2024年11月2日

2024年2月3日

2023年10月28日

资产

流动资产

现金及现金等价物

$

643 

$

1,447 

$

636 

应收款项,净额

932 

939 

901 

商品存货

7,806 

4,958 

7,562 

其他流动资产

574 

553 

766 

总流动资产

9,955 

7,897 

9,865 

物业和设备,净值

2,196 

2,260 

2,313 

营业租赁资产

2,842 

2,758 

2,827 

商誉

1,383 

1,383 

1,383 

其他资产

642 

669 

494 

总资产

$

17,018 

$

14,967 

$

16,882 

负债和股本

流动负债

应付账款

$

7,145 

$

4,637 

$

7,133 

未兑换的赠品卡负债

246 

253 

245 

递延收入

878 

1,000 

934 

应计的报酬和相关费用

361 

486 

309 

应计负债

690 

902 

760 

经营租赁负债流动部分

616 

618 

614 

长期债务的流动部分

12 

13 

15 

总流动负债

9,948 

7,909 

10,010 

长期经营租赁负债

2,293 

2,199 

2,270 

长期债务

1,144 

1,152 

1,130 

长期负债

551 

654 

660 

或有事项(注释10)

 

 

 

股权

百思买公司股东权益

优先股,$0.00011.00 面值:授权 - 400,000 股数;已发行及在外流通 -

-

-

-

普通股,每股面值为 $0.0001;0.10 面值:授权 - 1.0 十亿分享;已发行且流通 - 213.8百万美元,215.4 百万美元和 216.3分别为3,670.7万股和3,682.2万股

22 

22 

22 

追加实收资本

-

31 

-

留存收益

2,751 

2,683 

2,482 

累计其他综合收益

309 

317 

308 

总股本

3,082 

3,053 

2,812 

总负债和权益

$

17,018 

$

14,967 

$

16,882 

注意:截至2024年2月3日的合并资产负债表已从经过审核的合并基本报表中简化。

请参见简明合并财务报表的附注. 


3


目录

汇编利润表

美元和以百万为单位的股份,除每股金额外(未经审计)

截至三个月

截至九个月

2024年11月2日

2023年10月28日

2024年11月2日

2023年10月28日

收入

$

9,445 

$

9,756 

$

27,580 

$

28,806 

销售成本

7,228 

7,524 

21,113 

22,204 

毛利润

2,217 

2,232 

6,467 

6,602 

销售、一般和管理费用

1,871 

1,878 

5,418 

5,605 

重组费用

(4)

-

4 

(16)

营业收入

350 

354 

1,045 

1,013 

其他收入(费用):

出售子公司的收益,净额

-

-

-

21 

投资收益和其他

19 

8 

65 

41 

利息支出

(13)

(14)

(38)

(38)

税前收益和联营公司收益

356 

348 

1,072 

1,037 

所得税费用

85 

86 

266 

257 

关联公司股权法下投资收益

2 

1 

4 

1 

净收益

$

273 

$

263 

$

810 

$

781 

每股基本收益

$

1.27 

$

1.21 

$

3.76 

$

3.58 

每股摊薄收益

$

1.26 

$

1.21 

$

3.73 

$

3.57 

加权平均流通普通股数量:

基本

214.8 

217.8 

215.7 

218.4 

摊薄

216.7 

218.3 

217.2 

219.1 

请参阅简明合并财务报表中的说明。

 

4


目录

康德经过审计的综合收益基本报表

以百万美元计(未经审计)

截至三个月

截至九个月

2024年11月2日

2023年10月28日

2024年11月2日

2023年10月28日

净收益

$

273 

$

263 

$

810 

$

781 

货币翻译调整,税后净额

(1)

(14)

(8)

(14)

综合收益

$

272 

$

249 

$

802 

$

767 

请参阅简明合并财务报表中的说明。


5


目录

浓缩合并现金流量基本报表

百万美元(未经审计)

截至九个月

2024年11月2日

2023年10月28日

经营活动

净收益

$

810 

$

781 

调整净收益与经营活动提供的总现金的对账:

折旧和摊销

650 

702 

重组费用

4 

(16)

基于股票的补偿

108 

110 

出售子公司的收益,净额

-

(21)

其他,净数

3 

7 

运营资产和负债的变化:

应收账款

4 

240 

商品存货

(2,869)

(2,444)

其他资产

(16)

(17)

应付账款

2,483 

1,468 

所得税

(219)

(200)

其他负债

(397)

(320)

经营活动提供的现金总额

561 

290 

投资活动

新增资产和设备

(528)

(612)

出售子公司的净收益

-

14 

其他,净数

6 

(2)

股东权益简明合并变动表 单位:百万美元及百万股,每股金额为未经审计的信息

(522)

(600)

筹资活动

回购普通股

(285)

(270)

分红派息

(607)

(603)

其他,净数

-

1 

筹资活动中使用的总现金

(892)

(872)

汇率变动对现金及现金等价物的影响

(2)

(12)

现金及现金等价物净减少额

(855)

(1,194)

期初现金、现金等价物及受限制的现金余额

1,793 

2,253 

期末现金、现金等价物和受限制现金

$

938 

$

1,059 

请参阅简明合并财务报表中的说明。


6


目录

未实现损益

$ 和以百万计的分享,除每股金额外(未经审计)

普通股

普通股

额外实收资本

留存收益

累积其他全面收入(损失)

总计

截至2024年8月3日的余额

215.0 

$

22 

$

-

$

2,775 

$

310 

$

3,107 

截至2024年11月2日的三个月净收益

-

-

-

273 

-

273 

其他全面损失:

货币翻译调整,税后净额

-

-

-

-

(1)

(1)

基于股票的补偿

-

-

34 

-

-

34 

普通股发行

0.2 

-

6 

-

-

6 

普通股股息,$0.94 每股

-

-

4 

(206)

-

(202)

回购普通股

(1.4)

-

(44)

(91)

-

(135)

截至2024年11月2日的余额

213.8 

$

22 

$

-

$

2,751 

$

309 

$

3,082 

2024年2月3日余额

215.4 

$

22 

$

31 

$

2,683 

$

317 

$

3,053 

截至2024年11月2日的九个月净收益

-

-

-

810 

-

810 

其他全面损失:

货币翻译调整,税后净额

-

-

-

-

(8)

(8)

基于股票的补偿

-

-

108 

-

-

108 

普通股发行

1.6 

-

11 

-

-

11 

普通股股息,$2.82 每股

-

-

13 

(620)

-

(607)

回购普通股

(3.2)

-

(163)

(122)

-

(285)

截至2024年11月2日的余额

213.8 

$

22 

$

-

$

2,751 

$

309 

$

3,082 

截至2023年7月29日的余额

217.9 

$

22 

$

-

$

2,491 

$

322 

$

2,835 

截至2023年10月28日的三个月净收益

-

-

-

263 

-

263 

其他全面损失:

货币翻译调整,税后净额

-

-

-

-

(14)

(14)

基于股票的补偿

-

-

35 

-

-

35 

普通股发行

0.1 

-

7 

-

-

7 

普通股股息,$0.92 每股

-

-

4 

(204)

-

(200)

回购普通股

(1.7)

-

(46)

(68)

-

(114)

截至2023年10月28日的余额

216.3 

$

22 

$

-

$

2,482 

$

308 

$

2,812 

2023年1月28日余额

218.1 

$

22 

$

21 

$

2,430 

$

322 

$

2,795 

截至2023年10月28日的九个月净收益

-

-

-

781 

-

781 

其他全面损失:

货币翻译调整,税后净额

-

-

-

-

(14)

(14)

基于股票的补偿

-

-

110 

-

-

110 

普通股发行

1.9 

-

17 

-

-

17 

普通股股息,$2.76 每股

-

-

11 

(614)

-

(603)

回购普通股

(3.7)

-

(159)

(115)

-

(274)

截至2023年10月28日的余额

216.3 

$

22 

$

-

$

2,482 

$

308 

$

2,812 

请参阅简明合并财务报表中的说明。


7


目录

附注至简明合并财务报表

(未经审计)

 

1. 呈现基础

除非上下文另有规定,在这些简明综合基本报表的附注中使用“百思买”、“我们”、“我们”和“我们的”等术语是指百思买公司及其合并子公司(如适用)。

管理层认为,伴随的简明综合基本报表包含了根据美国一般公认会计原则(“GAAP”)所规定的公平呈现所需的所有调整。所有调整都由正常的经常性调整组成,除非在这些简明综合基本报表的附注中另有说明。

我们营业收入和利润的很大一部分是在财政第四季度产生的,这一季度包括了假期购物季的大部分。由于我们业务的季节性特征, interim results 并不一定能指示整个财政年度的结果。此季度报告的 interim financial statements 和相关附注应与我们财政年度截至2024年2月3日的年度报告中包含的合并基本报表和相关附注一起阅读。财政2025和2024年的前九个月均包括39周。

在准备伴随的简明综合基本报表时,我们评估了从2024年11月2日到财务报表发布之日的期间是否存在需要确认或披露的重要后续事件。未发现此类事件。

子公司出售

在2024财年的第二季度,我们完成了对墨西哥子公司的出售,此次出售是在我们退出墨西哥业务之后,并在已完成的子公司出售净收益中确认了$21 百万的收益,记录在截至2023年10月28日的九个月简明合并收益表中。

最近发布的会计声明

2023年11月,财务会计准则委员会(“FASB”)发布了会计准则更新(“ASU”)2023-07, 分部报告(主题 280):报告服务部门(主题 280)变更披露方式,通过升级对意义重大的分部费用的披露来改进分部报告披露要求。该准则适用于 2023 年 12 月 15 日之后的财年和 2024 年 12 月 15 日之后的财年间隔期。该准则必须适用于财务报表中呈现的所有期间的追溯。该公司目前正在评估该标准对合并财务报表的影响。这增强了可报告的板块披露要求,主要通过扩大对重大板块费用的披露。修订案适用于在2023年12月15日后开始的财政年度及在2024年12月15日后开始的财政年度的中期。修订案应追溯适用于财务报表中呈现的所有前期。我们目前正在评估ASU的影响,并预计将在2025财政年度的10-k表格中包括更新的板块费用披露。

2023年12月,FASB发布了ASU 2023-09, 《所得税(Topic 740):所得税披露改善》,ASU No. 2023-09。ASU中的修正要求上市公司按年度披露比例调节中的特定类别,以及按司法管辖区分类披露已支付的所得税。该ASU适用于2024年12月15日后开始年度的上市公司,允许提早采纳。我们目前正在评估该标准对我们的合并财务报表和相关披露的影响。这项ASU要求披露符合一定数量阈值的特定类别在收入税率对账中的信息,以及按管辖区细分的已支付的所得税。该ASU可以选择前瞻性或追溯性应用,自2024年12月15日之后开始的年度期间生效,允许提前采用。我们目前正在评估该ASU的影响,并预计将更新的 在我们的2026财年的10-k表格中披露所得税信息。

2024年11月,FASB发布了ASU 2024-03, 损益表—报告综合收入—费用细分披露(子主题220-40):损益表费用的细分该规则要求在基本报表的附注中披露 特定费用类别。修订自2026年12月15日后的财年开始以及自2027年12月15日后的财年内的中期期间生效。我们目前正在评估该ASU的影响,并预计将在我们的2028财年的10-k表格中包括更新的费用披露。

供应链融资

我们与一家独立金融机构有一个供应链融资计划,其中一些供应商有机会提前以折扣获得应付账款的结算,由金融机构促进。我们在该计划中的资金参与相关的负债,主要包括在我们简缩合并资产负债表的应付账款中,金额为$793 百万,$426 百万美元和美元680 截至2024年11月2日、2024年2月3日和2023年10月28日,分别为百万。


8


目录

总现金、现金等价物和受限制现金

我们在简明合并资产负债表中报告的现金、现金及现金等价物和受限现金与在我们的简明合并现金流量表中显示的总额 reconciled 如下(单位:百万美元):

2024年11月2日

2024年2月3日

2023年10月28日

现金及现金等价物

$

643 

$

1,447 

$

636 

在其他流动资产中包含的受限现金

295 

346 

423 

现金、现金等价物和受限制的现金总额

$

938 

$

1,793 

$

1,059 

限制现金中的金额主要用于覆盖我们会员服务下提供的产品保护计划和自保险责任。

重分类

已经对之前报告的小额金额进行了某些重新分类,以保持附带的现金流量综合报表在不同报告期之间的一致性和可比性。

2. 重组

重组费用如下(以百万计):

截至三个月

截至九个月

2024年11月2日

2023年10月28日

2024年11月2日

2023年10月28日

2024财年的重组计划

$

(4)

$

-

$

6 

$

-

2023财年的资源优化计划

-

-

(2)

(16)

总计

$

(4)

$

-

$

4 

$

(16)

2024财年的重组计划

在2024财年的第四季度,我们开始了一项企业范围的重组计划,旨在实现以下目标: (1) 将现场劳动资源与客户购物的需求对齐,以优化客户体验; (2) 将企业资源重定向,以更好地与我们的策略对齐; (3) 调整资源规模,以更好地与2025财年的营业收入预期对齐。

与此举措相关的所有费用均包括持续运营中的员工解雇福利,并在我们的简明合并收益表中列示为重组费用如下(单位:百万美元):

截至三个月

截至九个月

累积金额

2024年11月2日

2024年11月2日

截至2024年11月2日

国内

$

(4)

$

6 

$

169 

国际

-

-

8 

总计

$

(4)

$

6 

$

177 

与本计划相关的重组计提活动如下(单位:百万美元):

员工终止福利

国内

国际

总计

2024年2月3日余额

$

163 

$

8 

$

171 

费用

17 

1 

18 

现金支付

(82)

(2)

(84)

调整(1)

(11)

(1)

(12)

截至2024年11月2日的余额

$

87 

$

6 

$

93 

(1)主要是指由于之前计划的组织变动,员工留任率高于预期而进行的调整。

我们预计不会因这一倡议而产生重大未来重组费用。

9


目录

2023财年的资源优化计划

在2023财年的第二季度,我们启动了一项企业范围的举措,以更好地将我们的支出与关键战略和运营对齐,并优化我们的成本结构。与该计划相关的所有费用均来自持续运营的员工终止福利,并在我们的简明合并收益表中的重组费用中列示。

截至2024年11月2日,我们在2025财年和2024财年的前九个月中记录了对员工终止福利的减少,主要集中在我们的国内部门,原因是员工留任率高于预期。此项计划截至2024年11月2日所产生的累计费用为$125 百万,包含我们国内和国际部门各$122 百万美元和美元3 百万。我们预计与该计划相关的未来重组费用不会有重大支出,截至2024年11月2日没有重大负债。

3. 商誉和无形资产

商誉

截至2024年11月2日、2024年2月3日和2023年10月28日的商誉余额如下(单位:百万美元):

总账面价值

累计减值

国内

$

1,450 

$

(67)

国际

608 

(608)

总计

$

2,058 

$

(675)

No 在所呈现的期间内记录了减值费用。

无限期的无形资产

在2025财年的第二季度,我们将 我们的Yardbird 商标从有限使用期限的无形资产重新分类为无限使用期限的无形资产 以更好地反映我们对该商标长期使用的预期。 截至2024年11月2日,该商标的账面价值为$16 百万,并在我们的合并资产负债表中的其他资产中记录。

明确有限寿命的无形资产

我们在合并财务状况表的其他资产中记录了可确定使用寿命的无形资产,如下所示(单位:百万美元):

2024年11月2日

2024年2月3日

2023年10月28日

总账面
金额

累计
摊销

总账面
金额

累计
摊销

总账面
金额

累计
摊销

加权平均剩余使用寿命
截至2024年11月2日(以年计)

客户关系

$

360 

$

283 

$

360 

$

276 

$

360 

$

274 

9.4 

商标

92 

77 

108 

69 

108 

66 

1.9 

开发的科技

64 

60 

64 

59 

64 

59 

3.0 

总计

$

516 

$

420 

$

532 

$

404 

$

532 

$

399 

8.0 

摊销费用如下(单位:百万美元):

截至三个月

截至九个月

收益声明地点

2024年11月2日

2023年10月28日

2024年11月2日

2023年10月28日

摊销费用

销售、一般和管理费用

$

5 

$

15 

$

16 

$

56 

预计将在未来期间确认的摊销费用如下(百万美元):

摊销费用

2025财年剩余部分

$

4 

在估计的有形资产未来摊销费用至2024年4月30日时,摊销费用总额如下(以千为单位):

18 

科技开发、客户关系、知识产权以及其他购买的无形资产按照其预计使用寿命进行摊销,通常采用直线摊销法,期限从

16 

在估计的有形资产未来摊销费用至2024年4月30日时,摊销费用总额如下(以千为单位):

10 

科技开发、客户关系、知识产权以及其他购买的无形资产按照其预计使用寿命进行摊销,通常采用直线摊销法,期限从

8 

2030财年

7 

然后

33 

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4. Fair Value Measurements

Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data).

Recurring Fair Value Measurements

Financial assets and liabilities accounted for at fair value were as follows ($ in millions):

Fair Value as of

Balance Sheet Location(1)

Fair Value Hierarchy

November 2, 2024

February 3, 2024

October 28, 2023

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

40 

$

330 

$

3 

Time deposits(3)

Cash and cash equivalents

Level 2

5 

60 

26 

Money market funds(2)

Other current assets

Level 1

139 

182 

170 

Time deposits(3)

Other current assets

Level 2

50 

50 

81 

Marketable securities that fund deferred compensation(4)

Other assets

Level 1

38 

48 

44 

Liabilities

Interest rate swap derivative instruments(5)

Long-term liabilities

Level 2

16 

11 

36 

(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use.

(2)Valued at quoted market prices in active markets at period end.

(3)Valued at face value plus accrued interest at period end, which approximates fair value.

(4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.

(5)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.

Fair Value of Financial Instruments

The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.

Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):

November 2, 2024

February 3, 2024

October 28, 2023

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,028 

$

1,134 

$

1,022 

$

1,139 

$

931 

$

1,114 

(1)Excludes debt discounts, issuance costs and finance lease obligations.

  

5. Derivative Instruments

We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate interest rate risk on our $500 million of principal amount of notes due October 1, 2028. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.

Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. The gross fair values of our outstanding derivative instruments and corresponding fair value classifications are included in Note 4, Fair Value Measurements.

Notional amounts of our derivative instruments were as follows ($ in millions):

Contract Type

November 2, 2024

February 3, 2024

October 28, 2023

Derivatives designated as net investment hedges

$

119 

$

100 

$

102 

Derivatives designated as fair value hedges (interest rate swaps)

500 

500 

500 

No hedge designation (foreign exchange contracts)

129 

66 

93 

Total

$

748 

$

666 

$

695 

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Effects of our derivative instruments on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):

Gain (Loss) Recognized

Three Months Ended

Nine Months Ended

Statement of Earnings Location

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Interest rate swaps

Interest expense

$

(14)

$

(15)

$

(5)

$

(29)

Adjustments to carrying value of long-term debt

Interest expense

14 

15 

5 

29 

Total

$

-

$

-

$

-

$

-

6. Debt

Short-Term Debt

U.S. Revolving Credit Facility

We have a $1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 2, 2024, February 3, 2024, or October 28, 2023.

Long-Term Debt

Long-term debt consisted of the following ($ in millions):

November 2, 2024

February 3, 2024

October 28, 2023

Notes, 4.45%, due October 1, 2028

$

500 

$

500 

$

500 

Notes, 1.95%, due October 1, 2030

650 

650 

650 

Interest rate swap valuation adjustments

(16)

(11)

(36)

Subtotal

1,134 

1,139 

1,114 

Debt discounts and issuance costs

(7)

(8)

(8)

Finance lease obligations

29 

34 

39 

Total long-term debt

1,156 

1,165 

1,145 

Less current portion

12 

13 

15 

Total long-term debt, less current portion

$

1,144 

$

1,152 

$

1,130 

Fair Value and Future Maturities

See Note 4, Fair Value Measurements, for the fair value of long-term debt. Other than the $500 million of principal amount of notes due October 1, 2028, we do not have any future maturities of long-term debt within the next five fiscal years.

7. Revenue

We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily relate to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions):

November 2, 2024

February 3, 2024

October 28, 2023

Receivables, net(1)

$

471 

$

512 

$

555 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

246 

253 

245 

Deferred revenue

878 

1,000 

934 

Accrued liabilities

58 

53 

59 

Long-term contract liabilities included in:

Long-term liabilities

237 

245 

250 

(1)Receivables are recorded net of allowances for expected credit losses of $16 million, $23 million and $19 million as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively.

During the first nine months of fiscal 2025 and fiscal 2024, $1,054 million and $1,192 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

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Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):

Fiscal Year

Amount

Remainder of fiscal 2025

$

10 

Fiscal 2026

35 

Fiscal 2027

30 

Fiscal 2028

26 

Fiscal 2029

26 

Fiscal 2030

26 

Thereafter

115 

See Note 11, Segments, for information on our revenue by reportable segment and product category.

8. Earnings per Share

We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued.

Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Numerator

Net earnings

$

273 

$

263 

$

810 

$

781 

Denominator

Weighted-average common shares outstanding

214.8 

217.8 

215.7 

218.4 

Dilutive effect of stock compensation plan awards

1.9 

0.5 

1.5 

0.7 

Weighted-average common shares outstanding, assuming dilution

216.7 

218.3 

217.2 

219.1 

Potential shares which were anti-dilutive and excluded from weighted-average share computations

-

0.3 

-

0.4 

Basic earnings per share

$

1.27 

$

1.21 

$

3.76 

$

3.58 

Diluted earnings per share

$

1.26 

$

1.21 

$

3.73 

$

3.57 

9. Repurchase of Common Stock

On February 28, 2022, our Board of Directors approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization.

Information regarding share repurchases was as follows ($ and shares in millions, except per share amounts):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Total cost of shares repurchased

$

135 

$

128 

$

285 

$

278

Average price per share

$

95.43 

$

71.61 

$

87.19 

$

74.16

Total number of shares repurchased

1.4 

1.8 

3.2 

3.7

As of November 2, 2024, $3.5 billion of the $5.0 billion share repurchase authorization was available.

10. Contingencies

We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements.


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11. Segments

Reportable segment and product category revenue information was as follows ($ in millions):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Revenue by reportable segment

Domestic

$

8,697 

$

8,996 

$

25,523 

$

26,687 

International

748 

760 

2,057 

2,119 

Total revenue

$

9,445 

$

9,756 

$

27,580 

$

28,806 

Revenue by product category

Domestic:

Computing and Mobile Phones

$

4,065 

$

3,938 

$

11,445 

$

11,300 

Consumer Electronics

2,425 

2,589 

7,267 

7,839 

Appliances

1,057 

1,238 

3,324 

3,961 

Entertainment

479 

594 

1,497 

1,729 

Services

601 

563 

1,769 

1,650 

Other

70 

74 

221 

208 

Total Domestic revenue

$

8,697 

$

8,996 

$

25,523 

$

26,687 

International:

Computing and Mobile Phones

$

386 

$

378 

$

1,012 

$

1,003 

Consumer Electronics

194 

200 

553 

578 

Appliances

67 

74 

213 

225 

Entertainment

47 

54 

132 

164 

Services

47 

45 

124 

119 

Other

7 

9 

23 

30 

Total International revenue

$

748 

$

760 

$

2,057 

$

2,119 

Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates was as follows ($ in millions):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Domestic

$

337 

$

336 

$

1,007 

$

955 

International

13 

18 

38 

58 

Total operating income

350 

354 

1,045 

1,013 

Other income (expense):

Gain on sale of subsidiary, net

-

-

-

21 

Investment income and other

19 

8 

65 

41 

Interest expense

(13)

(14)

(38)

(38)

Earnings before income tax expense and equity in income of affiliates

$

356 

$

348 

$

1,072 

$

1,037 

Assets by reportable segment were as follows ($ in millions):

November 2, 2024

February 3, 2024

October 28, 2023

Domestic

$

15,551 

$

13,660 

$

15,395 

International

1,467 

1,307 

1,487 

Total assets

$

17,018 

$

14,967 

$

16,882 

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Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” refers to Best Buy Co., Inc. and its consolidated subsidiaries. Any references to our website addresses do not constitute incorporation by reference of the information contained on the websites.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Unless otherwise noted, transactions and other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of magnitude. Our MD&A should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (including the information presented therein under Risk Factors), as well as our other reports on Forms 10-Q and 8-K and other publicly available information. All amounts herein are unaudited.

Overview

We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.

We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business. The International segment is comprised of all our operations in Canada.

Our fiscal year ends on the Saturday nearest the end of January. Our business, like that of many retailers, is seasonal. A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season.

Comparable Sales

Throughout this MD&A, we refer to comparable sales. Comparable sales is a metric used by management to evaluate the performance of our existing stores, websites and call centers by measuring the change in net sales for a particular period over the comparable prior period of equivalent length. Comparable sales includes revenue from stores, websites and call centers operating for at least 14 full months. Revenue from online sales is included in comparable sales and represents sales initiated on a website or app, regardless of whether customers choose to pick up product in store, curbside, at an alternative pick-up location or take delivery direct to their homes. Revenue from acquisitions is included in comparable sales beginning with the first full quarter following the first anniversary of the date of the acquisition. Comparable sales also includes credit card revenue, gift card breakage, commercial sales and sales of merchandise to wholesalers and dealers, as applicable. Revenue from stores closed more than 14 days, including but not limited to relocated, remodeled, expanded and downsized stores, or stores impacted by natural disasters, is excluded from comparable sales until at least 14 full months after reopening. Comparable sales excludes the impact of certain periodic warranty-related profit-share revenue, the effect of fluctuations in foreign currency exchange rates (applicable to our International segment only) and the impact of the 53rd week (applicable in 53-week fiscal years only). Comparable sales is based on our fiscal calendar and is not adjusted to align calendar weeks. All periods presented apply this methodology consistently.

Consistent with our comparable sales policy, revenue from Best Buy Express locations rebranded as a result of our previously announced collaboration with Bell Canada is excluded from our comparable sales calculation until locations have been operating for at least 14 full months.

We believe comparable sales is a meaningful supplemental metric for investors to evaluate revenue performance resulting from growth in existing stores, websites and call centers versus the portion resulting from opening new stores or closing existing stores. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods.

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Table of Contents

Non-GAAP Financial Measures

This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), as well as certain adjusted or non-GAAP financial measures, such as non-GAAP operating income, non-GAAP effective tax rate and non-GAAP diluted earnings per share (“EPS”). We believe that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, provide additional useful information for evaluating current period performance and assessing future performance. For these reasons, internal management reporting, including budgets, forecasts and financial targets used for short-term incentives are based on non-GAAP financial measures. Generally, our non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and intangible asset impairments, price-fixing settlements, gains and losses on sales of subsidiaries and certain investments, intangible asset amortization, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when we believe doing so provides greater clarity to management and our investors. We provide reconciliations of the most comparable financial measures presented in accordance with GAAP to presented non-GAAP financial measures that enable investors to understand the adjustments made in arriving at the non-GAAP financial measures and to evaluate performance using the same metrics as management. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures may be calculated differently from similarly titled measures used by other companies, thereby limiting their usefulness for comparative purposes.

In our discussions of the operating results of our consolidated business and our International segment, we sometimes refer to the impact of changes in foreign currency exchange rates or the impact of foreign currency exchange rate fluctuations, which are references to the differences between the foreign currency exchange rates we use to convert the International segment’s operating results from local currencies into U.S. dollars for reporting purposes. We also may use the term “constant currency,” which represents results adjusted to exclude foreign currency impacts. We calculate those impacts as the difference between the current period results translated using the current period currency exchange rates and using the comparable prior period currency exchange rates. We believe the disclosure of revenue changes in constant currency provides useful supplementary information to investors in light of significant fluctuations in currency rates.

Refer to the Non-GAAP Financial Measures section below for detailed reconciliations of items impacting non-GAAP operating income, non-GAAP effective tax rate and non-GAAP diluted EPS in the presented periods.

Business Strategy Update

In the third quarter of fiscal 2025, we continued to manage our profitability through strong execution despite revenue declines. We made progress on our fiscal 2025 priorities, grew our paid membership base and drove improvements in our prioritized customer experiences. We continued to deliver sales growth in our Domestic computing and tablet categories as our market position, expert sales associates and compelling merchandising allowed us to capitalize on demand driven by our customers’ desire to replace or upgrade their products combined with new innovation.

We also continue to focus on the following four priorities: (1) invigorate and progress targeted customer experiences; (2) drive operational effectiveness and efficiency; (3) continue our disciplined approach to capital allocation; and (4) explore, pilot and drive incremental revenue streams.

This year, we have been focused on improving and refreshing our App and small view experiences – including enhanced personalization, new features like digital wallet, deal alerts and gift finders, along with a more stream-lined checkout process and faster content loading times. We have grown both customer ratings for our App and growth in active users. We believe this is an important way to engage our customers on their entire shopping journey, and our data shows that customers who use our App frequent us more often and thus spend more.

In our stores, we are making enhancements to every store in the chain in some fashion this year, improving both our merchandising and ease of shopping for customers. This includes working with many of our vendors to implement new and enhanced in-store experiences across the store. To continue to elevate the expert service we provide customers, we have added fully dedicated labor expertise to our in-store computing and have begun the process of doing so in our home theater and major appliances departments in hundreds of stores. These changes are in addition to the actions taken throughout the past year to streamline our leadership model, allowing us to invest in more customer-facing sales associate hours in our stores.

While we elevate our customer experiences, we are simultaneously executing on our longstanding commitment to drive operational effectiveness and efficiencies and identify cost reductions, as this is paramount to help offset inflationary pressures in our business and fund investment capacity. For example, in fiscal 2025 we are focused on driving further efficiencies across our forward and reverse supply chain, our Geek Squad repair operations and our customer care experience. We will continue to lean heavily on analytics and technology to achieve these efficiencies.

Our third key priority for the year is to continue our disciplined approach to capital allocation. This includes striking the appropriate balance of prioritizing areas that best position us for the future, while prudently dealing with the near-term uncertainty in the consumer electronics industry.

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Our fourth key priority for fiscal 2025 is longer-term in focus. We will continue to explore opportunities that leverage our scale and capabilities to drive incremental profitable revenue streams over time.

As we look to the rest of the year, we are excited for the holiday season in this still uncertain consumer electronics industry. We are well positioned with compelling deals, inspirational in-store and digital merchandising and competitive fulfillment options. We are the largest consumer electronics specialty retailer with what we believe to be a unique range of product assortment and expert services to help humanize tech, especially new innovation, for every stage of our customers’ lives. We intend to strengthen our position in key categories like computing, home theater and major appliances through our differentiated experiences, pointed marketing spend and competitive pricing.

Results of Operations

Consolidated Results

Selected consolidated financial data was as follows ($ in millions, except per share amounts):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Revenue

$

9,445 

$

9,756 

$

27,580 

$

28,806 

Revenue % change

(3.2)

%

(7.8)

%

(4.3)

%

(8.7)

%

Comparable sales % change

(2.9)

%

(6.9)

%

(3.7)

%

(7.8)

%

Gross profit

$

2,217 

$

2,232 

$

6,467 

$

6,602 

Gross profit as a % of revenue(1)

23.5 

%

22.9 

%

23.4 

%

22.9 

%

Selling, general and administrative expense ("SG&A")

$

1,871 

$

1,878 

$

5,418 

$

5,605 

SG&A as a % of revenue(1)

19.8 

%

19.2 

%

19.6 

%

19.5 

%

Restructuring charges

$

(4)

$

-

$

$

(16)

Operating income

$

350 

$

354 

$

1,045 

$

1,013 

Operating income as a % of revenue

3.7 

%

3.6 

%

3.8 

%

3.5 

%

Net earnings

$

273 

$

263 

$

810 

$

781 

Diluted earnings per share

$

1.26 

$

1.21 

$

3.73 

$

3.57 

(1)Because retailers vary in how they record costs of operating their supply chain between cost of sales and SG&A, our gross profit rate and SG&A rate may not be comparable to other retailers’ corresponding rates. For additional information regarding costs classified in cost of sales and SG&A, refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024.

In the third quarter and first nine months of fiscal 2025, we generated $9.4 billion and $27.6 billion in revenue, respectively, and our comparable sales declined 2.9% and 3.7%, respectively, as we continued to operate in a challenged consumer electronics industry and experienced softer customer demand. While our comparable sales declined in the third quarter of fiscal 2025 in categories such as appliances, home theater and gaming, we grew comparable sales in our computing, tablet and services categories.

Revenue, gross profit rate, SG&A and operating income rate changes in the third quarter and first nine months of fiscal 2025 were primarily driven by our Domestic segment. For further discussion of our Domestic and International segments, see Segment Performance Summary, below.

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Store Summary

Stores open by reportable segment were as follows:

November 2, 2024

October 28, 2023

Best Buy

889 

901 

Outlet Centers

25 

21 

Pacific Sales

20 

20 

Yardbird

23 

21 

Total Domestic stores

957 

963 

Canada Best Buy stores

129 

128 

Canada Best Buy Mobile stand-alone stores

31 

32 

Total International stores

160 

160 

Total stores

1,117 

1,123 

We continuously monitor store performance as part of a market-driven, omnichannel strategy. As we approach the expiration of leases, we evaluate various options for each location, including whether a store should remain open. In fiscal 2025, we currently expect to reduce our Domestic Best Buy store count by approximately 10 to 12 stores.

Earlier this year, we announced our collaboration with Bell Canada to rebrand 167 of its stores to Best Buy Express. These stores, previously part of The Source, a wholly owned subsidiary of Bell Canada, are leased by Bell Canada. Under the arrangement, we provide the curated consumer electronics assortment and Geek Squad services, as well as supply chain, marketing and e-commerce. Bell Canada is the exclusive telecommunications services provider and is also responsible for the store operations. As of November 2, 2024, nearly all of the 167 stores have been rebranded.

Income Tax Expense

Income tax expense was relatively unchanged in the third quarter of fiscal 2025. Our effective tax rate (“ETR”) decreased to 23.9% in the third quarter of fiscal 2025 compared to 24.7% in the third quarter of fiscal 2024, primarily due to increased tax benefits from green energy incentives.

Income tax expense increased in the first nine months of fiscal 2025, primarily due to an increase in pre-tax earnings. Our ETR remained unchanged at 24.8% in the first nine months of fiscal 2025 compared to the first nine months of fiscal 2024, primarily due to increased tax benefits from green energy incentives, offset by reduced tax benefits from the resolution of tax matters and stock-based compensation.

Our tax provision for interim periods is determined using an estimate of our annual ETR, adjusted for discrete items, if any, that are taken into account in the relevant period. We update our estimate of the annual ETR each quarter and we make a cumulative adjustment if our estimated tax rate changes. Our quarterly tax provision and our quarterly estimate of our annual ETR are subject to variation due to several factors, including our ability to accurately forecast our pre-tax and taxable income and loss by jurisdiction, tax audit developments, recognition of excess tax benefits or deficiencies related to stock-based compensation, foreign currency gains (losses), changes in laws or regulations, and expenses or losses for which tax benefits are not recognized. Our ETR can be more or less volatile based on the amount of pre-tax earnings. For example, the impact of discrete items and non-deductible losses on our ETR is greater when our pre-tax earnings are lower.

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Segment Performance Summary

Domestic Segment

Selected financial data for the Domestic segment was as follows ($ in millions):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Revenue

$

8,697 

$

8,996 

$

25,523 

$

26,687 

Revenue % change

(3.3)

%

(8.2)

%

(4.4)

%

(8.8)

%

Comparable sales % change(1)

(2.8)

%

(7.3)

%

(3.8)

%

(8.0)

%

Gross profit

$

2,049 

$

2,064 

$

5,993 

$

6,108 

Gross profit as a % of revenue

23.6 

%

22.9 

%

23.5 

%

22.9 

%

SG&A

$

1,716 

$

1,727 

$

4,982 

$

5,167 

SG&A as a % of revenue

19.7 

%

19.2 

%

19.5 

%

19.4 

%

Restructuring charges

$

(4)

$

$

$

(14)

Operating income

$

337 

$

336 

$

1,007 

$

955 

Operating income as a % of revenue

3.9 

%

3.7 

%

3.9 

%

3.6 

%

Selected Online Revenue Data

Total online revenue

$

2,727 

$

2,754 

$

7,970 

$

8,205 

Online revenue as a % of total segment revenue

31.4 

%

30.6 

%

31.2 

%

30.7 

%

Comparable online sales % change(1)

(1.0)

%

(9.3)

%

(2.9)

%

(9.5)

%

(1)Comparable online sales are included in the comparable sales calculation.

Domestic revenue decreased in the third quarter and first nine months of fiscal 2025, primarily driven by comparable sales declines in the appliances, home theater and gaming categories, partially offset by comparable sales growth in the computing, tablets and services categories. Online revenue of $2.7 billion and $8.0 billion in the third quarter and first nine months of fiscal 2025 decreased 1.0% and 2.9%, respectively, on a comparable basis.

Domestic segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:

Revenue Mix

Comparable Sales

Three Months Ended

Three Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Computing and Mobile Phones

47 

%

44 

%

3.8 

%

(8.3)

%

Consumer Electronics

28 

%

29 

%

(5.8)

%

(9.5)

%

Appliances

12 

%

14 

%

(14.7)

%

(15.1)

%

Entertainment

%

%

(18.8)

%

20.6 

%

Services

%

%

6.0 

%

6.9 

%

Other

%

%

12.9 

%

4.7 

%

Total

100 

%

100 

%

(2.8)

%

(7.3)

%

Notable comparable sales changes by revenue category were as follows:

Computing and Mobile Phones: The 3.8% comparable sales growth was driven primarily by computing and tablets.

Consumer Electronics: The 5.8% comparable sales decline was driven primarily by home theater.

Appliances: The 14.7% comparable sales decline was driven primarily by large appliances.

Entertainment: The 18.8% comparable sales decline was driven primarily by gaming.

Services: The 6.0% comparable sales growth was driven primarily by growth in our membership programs, as well as delivery and installation services.

Domestic gross profit rate increased in the third quarter of fiscal 2025, primarily due to improved financial performance from our services category, including our membership offerings, which was partially offset by lower profit-sharing revenue from our private label and co-branded credit card arrangement and lower product margin rates.

Domestic gross profit rate increased in the first nine months of fiscal 2025, primarily due to improved financial performance from our services category, including our membership offerings, which was partially offset by lower product margin rates and lower profit-sharing revenue from our private label and co-branded credit card arrangement.

Domestic SG&A decreased in the third quarter of fiscal 2025, primarily due to lower employee compensation expense and lower intangible asset amortization expense, partially offset by higher advertising expense.

Domestic SG&A decreased in the first nine months of fiscal 2025, primarily due to lower employee compensation expense, which was primarily store payroll, lower intangible amortization expense and reduced vehicle rental costs. These decreases were partially offset by higher advertising and technology expense.

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Table of Contents

Domestic restructuring charges in the third quarter and first nine months of fiscal 2025 were primarily related to employee termination benefits and subsequent adjustments from higher-than-expected employee retention associated with an enterprise-wide restructuring initiative that commenced in the fourth quarter of fiscal 2024. Refer to Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.

Domestic operating income rate increased in the third quarter and first nine months of fiscal 2025, primarily due to favorability in the gross profit rate, partially offset by decreased leverage from lower sales volume, which resulted in an unfavorable SG&A rate.

International Segment

Selected financial data for the International segment was as follows ($ in millions):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Revenue

$

748 

$

760 

$

2,057 

$

2,119 

Revenue % change

(1.6)

%

(3.4)

%

(2.9)

%

(7.9)

%

Comparable sales % change

(3.7)

%

(1.9)

%

(3.0)

%

(4.2)

%

Gross profit

$

168 

$

168 

$

474 

$

494 

Gross profit as a % of revenue

22.5 

%

22.1 

%

23.0 

%

23.3 

%

SG&A

$

155 

$

151 

$

436 

$

438 

SG&A as a % of revenue

20.7 

%

19.9 

%

21.2 

%

20.7 

%

Operating income

$

13 

$

18 

$

38 

$

58 

Operating income as a % of revenue

1.7 

%

2.4 

%

1.8 

%

2.7 

%

International revenue decreased in the third quarter of fiscal 2025, primarily driven by comparable sales declines in gaming, home theater and appliances, as well as the negative impact of foreign exchange rates. These decreases were partially offset by increased revenue from Best Buy Express locations.

International revenue decreased in the first nine months of fiscal 2025, primarily driven by comparable sales declines in gaming, computing and home theater, as well as the negative impact of foreign exchange rates. These decreases were partially offset by increased revenue from Best Buy Express locations and comparable sales growth in mobile phones.

International segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:

Revenue Mix

Comparable Sales

Three Months Ended

Three Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Computing and Mobile Phones

52 

%

50 

%

(0.1)

%

(1.0)

%

Consumer Electronics

26 

%

26 

%

(6.1)

%

(8.4)

%

Appliances

%

10 

%

(8.1)

%

4.0 

%

Entertainment

%

%

(18.7)

%

18.6 

%

Services

%

%

4.0 

%

2.4 

%

Other

%

%

(12.7)

%

(37.5)

%

Total

100 

%

100 

%

(3.7)

%

(1.9)

%

Notable comparable sales changes by revenue category were as follows:

Computing and Mobile Phones: The 0.1% comparable sales decline was driven primarily by computing and tablets, partially offset by comparable sales growth in mobile phones.

Consumer Electronics: The 6.1% comparable sales decline was driven primarily by home theater and home automation.

Appliances: The 8.1% comparable sales decline was driven by both large and small appliances.

Entertainment: The 18.7% comparable sales decline was driven primarily by gaming.

Services: The 4.0% comparable sales growth was driven primarily by growth in our membership programs.

International gross profit rate increased in the third quarter of fiscal 2025, primarily driven by growth in the higher margin services category.

International gross profit rate decreased in the first nine months of fiscal 2025, primarily driven by lower product margin rates and higher supply chain costs, which were partially offset by growth in the higher margin services category.

International SG&A increased in the third quarter of fiscal 2025, primarily driven by expenses associated with new Best Buy Express locations.

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Table of Contents

International SG&A decreased in the first nine months of fiscal 2025, primarily driven by lower advertising expense and lower employee compensation expense, which was primarily incentive compensation. These decreases were partially offset by expenses associated with new Best Buy Express locations.

International operating income rate decreased in the third quarter of fiscal 2025, primarily due to an unfavorable SG&A rate, partially offset by a favorable gross profit rate.

International operating income rate decreased in the first nine months of fiscal 2025, primarily due to decreased leverage from lower sales volume, which resulted in an unfavorable SG&A rate, and an unfavorable gross profit rate.

Consolidated Non-GAAP Financial Measures

Reconciliations of operating income, effective tax rate and diluted EPS (GAAP financial measures) to non-GAAP operating income, non-GAAP effective tax rate and non-GAAP diluted EPS (non-GAAP financial measures) were as follows ($ in millions, except per share amounts):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Operating income

$

350 

$

354 

$

1,045 

$

1,013 

% of revenue

3.7 

%

3.6 

%

3.8 

%

3.5 

%

Intangible asset amortization(1)

15 

16 

56 

Restructuring charges(2)

(4)

-

(16)

Non-GAAP operating income

$

351 

$

369 

$

1,065 

$

1,053 

% of revenue

3.7 

%

3.8 

%

3.9 

%

3.7 

%

Effective tax rate

23.9 

%

24.7 

%

24.8 

%

24.8 

%

Intangible asset amortization(1)

(0.1)

%

-

%

-

%

0.2 

%

Restructuring charges(2)

-

%

-

%

-

%

(0.1)

%

Non-GAAP effective tax rate

23.8 

%

24.7 

%

24.8 

%

24.9 

%

Diluted EPS

$

1.26 

$

1.21 

$

3.73 

$

3.57 

Intangible asset amortization(1)

0.02 

0.07 

0.07 

0.25 

Restructuring charges(2)

(0.02)

-

0.02 

(0.07)

Loss on investments

-

0.04 

-

0.05 

Gain on sale of subsidiary, net(3)

-

-

-

(0.10)

Income tax impact of non-GAAP adjustments(4)

-

(0.03)

(0.02)

(0.04)

Non-GAAP diluted EPS

$

1.26 

$

1.29 

$

3.80 

$

3.66 

For additional information regarding the nature of charges discussed below, refer to Note 1, Basis of Presentation, Note 2, Restructuring, and Note 3, Goodwill and Intangible Assets, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

(1)Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology assets.

(2)Represents charges related to employee termination benefits and subsequent adjustments from higher-than-expected employee retention associated with enterprise-wide restructuring initiatives.

(3)Represents the gain on sale of a Mexico subsidiary subsequent to our exit from operations in Mexico.

(4)The non-GAAP adjustments primarily relate to the U.S. and Mexico. As such, the forecasted annual income tax charge on a portion of the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%. There is no forecasted annual income tax for Mexico non-GAAP items and a portion of U.S. non-GAAP items, as there is no forecasted annual tax benefit/expense on the income/expenses in the calculation of GAAP income tax expense.

Non-GAAP operating income rate decreased in the third quarter of fiscal 2025, primarily due to an unfavorable SG&A rate, partially offset by a favorable gross profit rate. Non-GAAP operating income rate increased in the first nine months of fiscal 2025, primarily due to a favorable gross profit rate in our Domestic segment, partially offset by an unfavorable SG&A rate.

Non-GAAP effective tax rate decreased in the third quarter of fiscal 2025, primarily due to increased tax benefits from green energy incentives. Non-GAAP effective tax rate decreased in the first nine months of fiscal 2025, primarily due to increased tax benefits from green energy incentives, partially offset by reduced tax benefits from the resolution of tax matters and stock-based compensation.

Non-GAAP diluted EPS decreased in the third quarter of fiscal 2025, primarily due to the decrease in non-GAAP earnings. Non-GAAP diluted EPS increased in the first nine months of fiscal 2025, primarily due to the increase in non-GAAP earnings.


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Table of Contents

Liquidity and Capital Resources

We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level of investment required to support our business strategies, the performance of our business, capital expenditures, dividends, credit facilities, short-term borrowing arrangements and working capital management. We modify our approach to managing these variables as changes in our operating environment arise. For example, capital expenditures and share repurchases are a component of our cash flow and capital management strategy, which, to a large extent, we can adjust in response to economic and other changes in our business environment.

Cash and cash equivalents were as follows ($ in millions):

November 2, 2024

February 3, 2024

October 28, 2023

Cash and cash equivalents

$

643 

$

1,447 

$

636 

The decrease in cash and cash equivalents from February 3, 2024, was primarily due to dividend payments, capital expenditures and the timing and volume of inventory purchases and payments, partially offset by positive cash flows from operations, primarily driven by earnings.

The increase in cash and cash equivalents from October 28, 2023, was primarily due to positive cash flows from operations, primarily driven by earnings, partially offset by dividend payments, capital expenditures and share repurchases.

Cash Flows

Cash flows were as follows ($ in millions):

Nine Months Ended

November 2, 2024

October 28, 2023

Total cash provided by (used in):

Operating activities

$

561 

$

290 

Investing activities

(522)

(600)

Financing activities

(892)

(872)

Effect of exchange rate changes on cash and cash equivalents

(2)

(12)

Decrease in cash, cash equivalents and restricted cash

$

(855)

$

(1,194)

Operating Activities

The increase in cash provided by operating activities in the first nine months of fiscal 2025 was primarily driven by the timing and volume of inventory purchases and payments, partially offset by the timing of vendor funding receivables.

Investing Activities

Cash used in investing activities in the first nine months of fiscal 2025 decreased, primarily driven by lower capital spending. We currently expect capital expenditures to approximate $750 million in fiscal 2025 compared to $795 million in fiscal 2024.

Financing Activities

The increase in cash used in financing activities in the first nine months of fiscal 2025 was primarily driven by higher share repurchases.

Sources of Liquidity

Funds generated by operating activities, available cash and cash equivalents, our credit facilities, other debt arrangements and trade payables are our most significant sources of liquidity. We believe our sources of liquidity will be sufficient to fund operations and anticipated capital expenditures, share repurchases, dividends and strategic initiatives, including business combinations. However, in the event our liquidity is insufficient, we may be required to limit our spending. There can be no assurance that we will continue to generate cash flows at or above current levels or that we will be able to maintain our ability to borrow under our existing credit facilities or obtain additional financing, if necessary, on favorable terms.

We have a $1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 2, 2024, February 3, 2024, or October 28, 2023.

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Table of Contents

Restricted Cash

Our liquidity is also affected by restricted cash balances that are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities. Restricted cash, which is included in Other current assets on our Condensed Consolidated Balance Sheets, was $295 million, $346 million and $423 million at November 2, 2024, February 3, 2024, and October 28, 2023, respectively. The decrease in restricted cash from February 3, 2024, and October 28, 2023, was primarily due to releases of product protection reserves based on claims and purchasing behaviors of customers participating in our membership offerings.

Debt and Capital

As of November 2, 2024, we had $500 million of principal amount of notes due October 1, 2028, and $650 million of principal amount of notes due October 1, 2030. Refer to Note 6, Debt, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q, and Note 8, Debt, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, for additional information about our outstanding debt.

Share Repurchases and Dividends

We repurchase our common stock and pay dividends pursuant to programs approved by our Board of Directors (“Board”). The payment of cash dividends is also subject to customary legal and contractual restrictions. Our long-term capital allocation strategy is to first fund operations and investments in growth and then return excess cash over time to shareholders through dividends and share repurchases while maintaining investment-grade credit metrics. Our share repurchase plans are evaluated on an ongoing basis, considering factors such as our financial condition and cash flows, our economic outlook, the impact of tax laws, our liquidity needs, and the health and stability of global credit markets. The timing and amount of future repurchases may vary depending on such factors.

On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization.

Share repurchase and dividend activity were as follows ($ and shares in millions, except per share amounts):

Three Months Ended

Nine Months Ended

November 2, 2024

October 28, 2023

November 2, 2024

October 28, 2023

Total cost of shares repurchased

$

135 

$

128 

$

285 

$

278 

Average price per share

$

95.43 

$

71.61 

$

87.19 

$

74.16 

Total number of shares repurchased

1.4 

1.8 

3.2 

3.7 

Regular quarterly cash dividend per share

$

0.94 

$

0.92 

$

2.82 

$

2.76 

Cash dividends declared and paid

$

202 

$

201 

$

607 

$

603 

The total cost of shares repurchased increased in the third quarter and first nine months of fiscal 2025, primarily due to an increase in the average price per share, partially offset by a decrease in the volume of repurchases. We currently expect total share repurchases of up to $500 million in fiscal 2025.

Cash dividends declared and paid increased during the third quarter and first nine months of fiscal 2025, due to the increase in the regular quarterly cash dividend per share, partially offset by fewer shares outstanding.

Off-Balance-Sheet Arrangements and Contractual Obligations

Our liquidity is not dependent on the use of off-balance-sheet financing arrangements other than in connection with our $1.25 billion in undrawn capacity on our Five-Year Facility Agreement as of November 2, 2024, which, if drawn upon, would be included in either short-term or long-term debt on our Condensed Consolidated Balance Sheets.

There has been no material change in our contractual obligations other than in the ordinary course of business since the end of fiscal 2024. See our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, for additional information regarding our off-balance-sheet arrangements and contractual obligations.

Significant Accounting Policies and Estimates

We describe our significant accounting policies in Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, and our critical accounting estimates in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024. There have been no significant changes in our significant accounting policies or critical accounting estimates since the end of fiscal 2024.


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Table of Contents

New or Recently Issued Accounting Pronouncements

For a description of applicable new or recently issued accounting pronouncements, including our assessment of the impact on our financial statements, see Note 1, Basis of Presentation, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

Safe Harbor Statement Under the Private Securities Litigation Reform Act

Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), provide a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their companies. With the exception of historical information, the matters discussed in this Quarterly Report on Form 10-Q are forward-looking statements and may be identified by the use of words such as “anticipate,” “appear,” “approximate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “guidance,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “project,” “seek,” “should,” “would,” and other words and terms of similar meaning or the negatives thereof. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, our operating model, new strategies and growth initiatives, the competitive environment, consumer behavior and other events. These statements involve a number of judgments and are subject to certain risks and uncertainties, many of which are outside the control of the Company, that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our most recent Annual Report on Form 10-K, and any updated information in subsequent Quarterly Reports on Form 10-Q, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this Quarterly Report on Form 10-Q. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macroeconomic pressures in the markets in which we operate (including but not limited to recession, inflation rates, fluctuations in foreign currency exchange rates, limitations on a government’s ability to borrow and/or spend capital, fluctuations in housing prices, energy markets, jobless rates, the imposition of tariffs, trade wars and effects related to the conflicts in Eastern Europe and the Middle East or other geopolitical events); catastrophic events, health crises and pandemics; susceptibility of the products we sell to technological advancements, product life cycle fluctuations and changes in consumer preferences; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers and in the provision of delivery speed and options); our ability to attract and retain qualified employees; changes in market compensation rates; our expansion into health and new products, services and technologies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our ability to effectively manage strategic ventures, alliances or acquisitions; our ability to effectively manage our real estate portfolio; inability of vendors or service providers to perform components of our supply chain (impacting our stores or other aspects of our operations) and other various functions of our business; risks arising from and potentially unique to our exclusive brands products; risks associated with vendors that source products outside of the U.S.; our reliance on our information technology systems, internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; product safety and quality concerns; changes to labor or employment laws or regulations; risks arising from statutory, regulatory and legal developments (including statutes and/or regulations related to tax or privacy); evolving corporate governance and public disclosure regulations and expectations (including, but not limited to, cybersecurity and environmental, social and governance matters); risks arising from our international activities (including those related to the conflicts in Eastern Europe and the Middle East, fluctuations in foreign currency exchange rates, the imposition of tariffs and trade wars) and those of our vendors; failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; pricing investments and promotional activity; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the capital markets; changes to our vendor credit terms; changes in our credit ratings; and failure to meet financial-performance guidance or other forward-looking statements. We caution that the foregoing list of important factors is not complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we may make.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, in addition to the risks inherent in our operations, we are exposed to certain market risks.

Interest Rate Risk

We are exposed to changes in short-term market interest rates and these changes in rates will impact our net interest expense. Our cash, cash equivalents and restricted cash generate interest income that will vary based on changes in short-term interest rates. In addition, we have swapped a portion of our fixed-rate debt to floating rate such that the interest expense on this debt will vary with short-term interest rates. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, for further information regarding our interest rate swaps.


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Table of Contents

As of November 2, 2024, we had $0.9 billion of cash, cash equivalents and restricted cash and $0.5 billion of debt that has been swapped to floating rate, and therefore the net asset balance exposed to interest rate changes was $0.4 billion. As of November 2, 2024, a 50-basis point increase in short-term interest rates would have led to an estimated $2 million increase in interest income, and conversely a 50-basis point decrease in short-term interest rates would have led to an estimated $2 million decrease in interest income.

Foreign Currency Exchange Rate Risk

We have market risk arising from changes in foreign currency exchange rates related to operations in our International segment. On a limited basis, we utilize foreign exchange forward contracts to manage foreign currency exposure to certain forecasted inventory purchases, recognized receivable and payable balances and our investment in our Canadian operations. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, for additional information regarding these instruments.

In the third quarter and first nine months of fiscal 2025, foreign currency exchange rate fluctuations were driven by the strength of the U.S. dollar against the Canadian dollar compared to the prior-year period. We estimate that the foreign currency exchange rate fluctuations had an unfavorable impact on our revenue of approximately $6 million and $25 million in the third quarter and first nine months of fiscal 2025, respectively. The impact of foreign exchange rate fluctuations on our net earnings in the third quarter and first nine months of fiscal 2025 was not significant.

Item 4.Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s (“SEC”) rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure. We have established a Disclosure Committee, consisting of certain members of management, to assist in this evaluation. The Disclosure Committee meets on a regular quarterly basis and more often if necessary.

Our management, including our Chief Executive Officer and Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), at November 2, 2024. Based on that evaluation, our Chief Executive Officer and Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer concluded that, at November 2, 2024, our disclosure controls and procedures were effective.

There were no changes in internal control over financial reporting during the fiscal quarter ended November 2, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

 

Item 1.Legal Proceedings

For information about our legal proceedings, see Note 10, Contingencies, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

c) Stock Repurchases

On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization. For additional information, see Note 9, Repurchase of Common Stock, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Fiscal Period

Total Number of
Shares Purchased

Average Price Paid
per Share

Total Number of Shares Purchased as Part of Publicly Announced Program

Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program

August 4, 2024 through August 31, 2024

376,830 

$

86.40 

376,830 

$

3,602,000,000 

September 1, 2024 through October 5, 2024

736,070 

$

99.08 

736,070 

$

3,529,000,000 

October 6, 2024 through November 2, 2024

306,831 

$

97.77 

306,831 

$

3,499,000,000 

Total fiscal 2025 third quarter

1,419,731 

$

95.43 

1,419,731 

$

3,499,000,000 

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Item 5.Other Information

Rule 10b5-1 Plan Elections

Set forth below are developments regarding trading plan arrangements among our directors and officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) for the quarter ended November 2, 2024.

On September 12, 2024, Matthew Bilunas, the Company’s Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, providing for the potential sale of up to 69,116 shares of our common stock through May 30, 2025.

Item 6.Exhibits

3.1

Amended and Restated Articles of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Best Buy Co., Inc. on June 12, 2020).

3.2

Amended and Restated By-Laws (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Best Buy Co., Inc. on June 14, 2018).

31.1

Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(1).

32.2

Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(1).

101

The following financial information from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2025, filed with the SEC on December 6, 2024, formatted in Inline Extensible Business Reporting Language (“iXBRL”): (i) the Condensed Consolidated Balance Sheets as of November 2, 2024, February 3, 2024, and October 28, 2023, (ii) the Condensed Consolidated Statements of Earnings for the three and nine months ended November 2, 2024, and October 28, 2023, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 2, 2024, and October 28, 2023, (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended November 2, 2024, and October 28, 2023, (v) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 2, 2024, and October 28, 2023, and (vi) the Notes to Condensed Consolidated Financial Statements.

104

The cover page from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2025, filed with the SEC on December 6, 2024, formatted in iXBRL (included as Exhibit 101).

(1)The certifications in Exhibit 32.1 and Exhibit 32.2 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Pursuant to Item 601(b)(4)(iii) of Regulation S-K under the Securities Act of 1933, as amended, the registrant has not filed as exhibits to this Quarterly Report on Form 10-Q certain instruments with respect to long-term debt under which the amount of securities authorized does not exceed 10% of the total assets of the registrant. The registrant hereby agrees to furnish copies of all such instruments to the SEC upon request.


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BEST BUY CO., INC.

(Registrant)

Date: December 6, 2024

By:

/s/ CORIE BARRY

Corie Barry

Chief Executive Officer

Date: December 6, 2024

By:

/s/ MATTHEW BILUNAS

Matthew Bilunas

Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer

Date: December 6, 2024

By:

/s/ MATHEW R. WATSON

Mathew R. Watson

Senior Vice President, Finance – Controller and Chief Accounting Officer

 

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