Best Buy — Aug 28, 2025 release

At this point, we do believe we are trending toward the higher end of our sales range.” FY26 Financial Guidance Best Buy is reiterating the following full-year FY26 financial guidance provided on May 29, 2025: • Revenue of $41.1 billion to $41.9 billion • Comparable sales 1 of (1.0%) to 1.0% • Adjusted operating income rate 2 of approximately 4.2% • Adjusted effective income tax rate 2 of approximately 25.0% • Adjusted diluted EPS 2 of $6.15 to $6.30 • Capital expenditures of approximately $700 million Domestic Segment Q2 FY26 Results Domestic Revenue Domestic revenue of $8.70 billion increased 0.9% versus last year primarily driven by comparable sales growth of 1.1%. From a merchandising perspective, the largest drivers of the comparable sales increase on a weighted basis were gaming, computing and mobile phones. These drivers were partially offset by declines in home theater, appliances, tablets and drones. Domestic online revenue of $2.86 billion increased 5.1% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 32.8% versus 31.5% last year. Domestic Gross Profit Rate Domestic gross profit rate was 23.4% versus 23.5% last year. The lower gross profit rate was primarily due to lower product margin rates, which were partially offset by rate improvement within the services category. The lower product margin rates were primarily driven by a higher sales mix of lower-margin categories. Domestic Adjusted Selling, General and Administrative Expenses (“SG&A”) Domestic adjusted SG&A expenses were $1.68 billion, or 19.3% of revenue, versus $1.66 billion,