Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 34

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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Domestic segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates and rate pressure within our Best Buy Health business, which were partially offset by rate improvement within the services category.

Domestic segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to lower Best Buy Health expenses, largely offset by higher incentive compensation expense.

Domestic segment adjusted SG&A increased in the first nine months of fiscal 2026, primarily due to higher compensation expense, which includes incentive compensation, partially offset by lower Best Buy Health expenses and favorable fiscal 2026 indirect tax resolutions.

Domestic segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable adjusted SG&A rate driven by sales leverage, partially offset by an unfavorable gross profit rate.

Domestic segment adjusted operating income rate remained effectively unchanged in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025, primarily due to a favorable adjusted SG&A rate, offset by an unfavorable gross profit rate.

International Segment

Selected financial data for the International segment was as follows ($ in millions):

Three Months EndedNine Months EndedNovember 1, 2025November 2, 2024November 1, 2025November 2, 2024Revenue$794 $748 $2,174 $2,057 Revenue % change6.1 %(1.6)%5.7 %(2.9)%Comparable sales % change6.3 %(3.7)%4.5 %(3.0)%Gross profit$181 $168 $483 $474 Gross profit as a % of revenue22.8 %22.5 %22.2 %23.0 %Adjusted SG&A(1)$153 $155 $433 $436 Adjusted SG&A as a % of revenue(2)19.3 %20.7 %19.9 %21.2 %Adjusted operating income(1)$28 $13 $50 $38 Adjusted operating income as a % of revenue(3)3.5 %1.7 %2.3 %1.8 %

(1)Represents International segment Adjusted SG&A and International segment Adjusted operating income as reported in accordance with the adoption of ASU 2023-07. See our Annual Report on Form