Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 30

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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2026 were related to Best Buy Health. A change in Best Buy Health’s customer base during the third quarter of fiscal 2026 resulted in an impairment review of all Best Buy Health assets. The impairments reflect downward revisions of our revenue growth rates and margin rates compared to previous projections, in part due to pressures in the Medicaid and Medicare Advantage markets. Refer to Note 3, Goodwill and Intangible Assets, of the Notes to Consolidated Financial Statements, for additional information 

Operating income rate decreased in the third quarter of fiscal 2026, primarily due to goodwill and intangible asset impairments.

Operating income rate decreased in the first nine months of fiscal 2026, primarily due to higher restructuring charges and goodwill and intangible asset impairments.

Diluted EPS decreased in the third quarter of fiscal 2026, primarily due to lower net earnings driven by higher goodwill and intangible asset impairments, partially offset by lower income tax expense.

Diluted EPS decreased in the first nine months of fiscal 2026, primarily due to lower net earnings driven by higher restructuring charges and goodwill and intangible asset impairments, partially offset by lower income tax expense.

Revenue, gross profit rate, SG&A rate and operating income rate changes in the third quarter of fiscal 2026 were primarily driven by our Domestic segment.

Revenue, gross profit rate and operating income rate changes in the first nine months of fiscal 2026 were primarily driven by our Domestic segment, and SG&A rate changes in the first nine months of fiscal 2026 were driven by our International segment. 

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For further discussion of our Domestic and International segments, see Segment Performance Summary, below.

Store Summary

Stores open by reportable segment were as follows:

November 1, 2025November 2, 2024Best Buy886889Outlet Centers1825Pacific Sales2020Yardbird223Total Domestic stores926957Canada Best Buy stores129129Canada Best Buy Mobile stand-alone stores2831Total International stores(1)157160Total stores1,0831,117

(1)Excludes Best Buy Express stores leased by Bell Canada.

We continuously monitor store performance as part of a market-driven, omnichannel strategy. As we approach the expiration of leases, we evaluate various options for each location, including whether a store should remain open. In fiscal 2026, we currently expect to reduce our traditional Domestic Best Buy store count by 5 stores in the normal course of operations. In fiscal 2026, we closed select non-tr