On June 19, Best Buy
- The net sales increased by 13.9% to $7.9 billion. Same-store sales moved ahead 3.0%, and online revenue shot up 20%.
- Gross profit margin dipped by 150 bps to 23.9%. According to the company, this decline is due to lower gross profit rate from the Chinese business acquired last June and lower margins from notebook computers and gaming hardware.
- The company repurchased approximately 8.7 million shares of its common stock at an average price of $47.21 per share for a total of $412 million.
- The company lowered its fiscal 2008 earning per diluted share guidance to a range of $2.95 to $3.15.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$7,927 |
$6,959 |
13.9% |
|
Net Profit |
$192 |
$234 |
(17.9%) |
|
EPS |
$0.39 |
$0.47 |
(17%) |
|
Diluted Shares |
491.5 |
500.8 |
(1.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
23.9% |
25.4% |
(1.5) |
|
Operating Margin |
3.4% |
4.8% |
(1.5) |
|
Net Margin |
2.4% |
3.4% |
(0.9) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,802 |
$2,326 |
20.5% |
|
Accounts Rec. |
$476 |
$409 |
16.4% |
|
Inventory |
$4,298 |
$3,737 |
15% |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|
Accounts Payable |
$3,957 |
$3,055 |
29.5% |
|
Total Debt |
$665 |
$598 |
11.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
You wouldn't buy a receiver without having speakers to use, and you can't look at the complete financial performance without a cash flow statement.
Free cash flow is a Fool's best friend.
Related Foolishness:
- Before the Call: Will Best Buy Deliver?
- Circuit City Tunes Up Again
- Foolish Forecast: Growth at Conn's?
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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
