On Wednesday, April 4, electronics retailer Best Buy
- 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) |
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:
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- Best Buy Bests Circuit City, Again
- 70 Times Better Than the Next Microsoft
Best Buy is a Motley 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.
