Best Buy Bucks the Competition: Fool by Numbers

On Wednesday, April 4, electronics retailer Best Buy (NYSE: BBY  ) released fourth-quarter and year-end results for the period ended March 3. Here are the quick and dirty details for the quarter.

  • Total sales expanded 20.6% as Best Buy continues to outgrow the competition. Management cited an extra week during the quarter, new store openings, and acquired store additions for the sales expansion. Online sales improved 40%.
  • Same-store sales advanced 5.9%, which consisted of 4.8% domestic comps and a nice 14% comp increase internationally as Best Buy opened its first store in China.   
  • Diluted earnings improved 20.2% as less shares outstanding offset lower gross, operating, and net margins.
  • Management expects fiscal 2008 sales growth of 9%, to $39 billion, and diluted earnings growth of about 14%, to $3.10-$3.25.   
  • Best Buy carries a three-star rating in the Motley Fool CAPS intelligence database, again besting archrival Circuit City (NYSE: CC  ) which only carries a one-star rating. Regional rival Rex Stores (NYSE: RSC  ) also carries a three-star rating. You can be the first to rate Tweeter (Nasdaq: TWTR  ) in CAPS.      

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2007

Q4 2006

Change

Sales

$12,899

$10,693

20.6%

Net Profit

$763

$644

18.5%

EPS

$1.55

$1.29

20.2%

Diluted Shares

495

503

(1.7%)

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2007

Q4 2006

Change*

Gross Margin

24.1%

25%

(0.9)

Operating Margin

8.8%

8.9%

(0.1)

Net Margin

5.9%

6%

(0.1)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2007

Q4 2006

Change

Cash + ST Invest.

$3,793

$3,789

0.1%

Accounts Rec.

$548

$449

22%

Inventory

$4,028

$3,338

20.7%

Liabilities

Q4 2007

Q4 2006

Change

Accounts Payable

$3,934

$3,234

21.6%

Long-Term Debt

$590

$178

231.5%

The balance sheet reflects the company's health.

Cash Flow Highlights
Fools will have to wait until Best Buy files its 10-K with the Securities and Exchange Commission for juicy cash flow details.

Free cash flow is a Fool's best friend.

Related Foolishness:

Best Buy is aMotley Fool Stock Advisor recommendation. Find out why with a free 30-day trial to the newsletter.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.


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