Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 63

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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6 were driven by our International segment. 

20

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-traditional Domestic store locations in conjunction with our restructuring initiative that commenced in the second quarter of fiscal 2026, with additional closures expected in fiscal 2027. See Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.

Income Tax Expense

Income tax expense decreased to $64 million in the third quarter of fiscal 2026 compared to $85 million in the third quarter of fiscal 2025, primarily due to lower pre-tax income, partially offset by the impact of certain expenses that are not tax deductible. Effective tax rate (“ETR”) increased to 31.5% in the third quarter of fiscal 2026 compared to 23.9% in the third quarter of fiscal 2025, primarily due to the impact of certain expenses that are not tax deductible and lower pre-tax income, partially offset by increased tax benefits from resolutions of tax matters.

Income tax expense decreased to $151 million in the first nine months of fiscal 2026 compared to $266 million in the first nine months of fiscal 2025, primarily due to lower pre-tax income and the discrete tax impacts of the restructuring charges and associated exit of a component of our Best Buy Health business, partially offset by the impact of certain expenses that are not tax deductible. ETR decreased to 22.3% in the first nine months of fiscal 2026 compared to 24.8% in the first nine months of fiscal 2025