Best Buy Reported Mixed Fourth-Quarter Earnings

Mar 3, 2022 By MarketDepth

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Best Buy (NYSE: BBY) reported mixed fourth-quarter earnings Thursday morning amid supply chain issues and ongoing staffing shortages. Nevertheless, shares rose after executives detailed a better forecast for the years ahead.

Earnings On Track With Analysts

The multinational electronics retailer reported earnings of USD2.73 per share, on track with the expected USD2.73 a share. Revenue amounted to USD16.37 Billion, lower than analysts anticipated USD16.6 Billion. Furthermore, net income fell to USD626 Million, from the previous year’s USD816 MIllion.

“Our teams showed remarkable execution and dedication to serving our customers throughout the important gift-giving season. In Q4, we drove improvement in year-over-year customer satisfaction metrics across almost all areas, particularly for in-store, online and chat experiences. And even with online sales at almost 40% of our Domestic revenue, we reached our fastest holiday delivery times ever, shipping products to customer homes more than 25% faster than last year and two years ago. I am truly grateful for, and continue to be impressed by, our associates’ dedication, resourcefulness and flat-out determination.”

Corie Barry, Best Buy CEO

Additionally, the company said it was counting on its new USD200 per year membership program, as well as other tech support and healthcare services, to increase revenue in the long run.

“As we look to FY25, we expect the consumer electronics industry will return to the level we saw this past year, which is much higher than pre-pandemic levels, and that Totaltech, Best Buy Health and other initiatives will drive meaningful growth,”

Finance Chief, Matt Bilunas

Best Buy shares closed at USD100.84 on Wednesday, a 3.77% increase, and has a current market value of USD24 Billion.