Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 33

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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-K for the fiscal year ended February 1, 2025, for additional information.

(3)Adjusted SG&A as a % of revenue is calculated as Domestic segment Adjusted SG&A divided by Domestic segment Revenue.

(4)Adjusted operating income as a % of revenue is calculated as Domestic segment Adjusted operating income divided by Domestic segment Revenue.

Domestic segment revenue increased in the third quarter and first nine months of fiscal 2026, primarily driven by comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater and appliances. Online revenue of $2.8 billion and $8.3 billion in the third quarter and first nine months of fiscal 2026 increased 3.5% and 3.6%, respectively, on a comparable basis.

Domestic segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:

Revenue MixComparable SalesThree Months EndedThree Months EndedNovember 1, 2025November 2, 2024November 1, 2025November 2, 2024Computing and Mobile Phones49%47%7.6 %3.8 %Consumer Electronics26%28%(2.9)%(5.8)%Appliances11%12%(8.4)%(14.7)%Entertainment6%5%14.0 %(18.8)%Services7%7%(1.0)%6.0 %Other1%1%(6.5)%12.9 %Total100%100%2.4 %(2.8)%

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Notable comparable sales changes by revenue category were as follows:

•Computing and Mobile Phones: The 7.6% comparable sales growth was driven primarily by computing and mobile phones.

•Consumer Electronics: The 2.9% comparable sales decline was driven primarily by home theater. 

•Appliances: The 8.4% comparable sales decline was driven primarily by large appliances.

•Entertainment: The 14.0% comparable sales growth was driven primarily by gaming, partially offset by a comparable sales decline in drones.

•Services: The 1.0% comparable sales decline was driven primarily by Best Buy Health service offerings.

Domestic segment gross profit rate decreased in the third quarter of fiscal 2026, 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 an unfavorable sales mix and increased personalized promotional offers