Best Buy (BBY) Q2 2025 earnings summary

Executive summary

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

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

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

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

• The company continued to execute on restructuring initiatives, cost reductions, and investments in customer experience and technology.

Financial highlights

• Q2 revenue: $9.3 billion (down 3.1% year-over-year); six-month revenue: $18.1 billion (down 4.8%).

• Q2 net earnings: $291 million; diluted EPS: $1.34; operating income: $383 million (4.1% margin).

• Domestic segment revenue fell 3% to $8.62 billion; international revenue dropped 4% to $665 million.

• Domestic gross profit rate rose to 23.5%; international gross profit rate fell to 23.9%.

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

Outlook and guidance

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

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

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

• Capital expenditures for FY25 expected at $750 million; $500 million planned for share repurchases.

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