Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 29

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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%23.5 %23.3 %23.4 %Selling, general and administrative expense ("SG&A")$1,884 $1,871 $5,434 $5,418 SG&A as a % of revenue(1)19.5 %19.8 %19.5 %19.6 %Restructuring charges$(5)$(4)$218 $4 Goodwill and intangible asset impairments$171 $- $171 $- Operating income$198 $350 $668 $1,045 Operating income as a % of revenue2.0 %3.7 %2.4 %3.8 %Net earnings$140 $273 $528 $810 Diluted EPS$0.66 $1.26 $2.48 $3.73 

(1)Because retailers vary in how they record costs of operating their supply chain between cost of sales and SG&A, our gross profit rate and SG&A rate may not be comparable to other retailers’ corresponding rates. For additional information regarding costs classified in cost of sales and SG&A, refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

In the third quarter and first nine months of fiscal 2026, we generated $9.7 billion and $27.9 billion in revenue, respectively, and our comparable sales grew 2.7% and 1.2%, respectively, driven by a mix of new technology innovation, our continued focus on omni-channel customer experience and strong vendor partnerships. Comparable sales changes in the third quarter and first nine months of fiscal 2026 primarily included comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater, appliances and drones.

Restructuring charges in the first nine months of fiscal 2026 were primarily associated with a labor and store optimization restructuring initiative that commenced in the second quarter of fiscal 2026 and a restructuring initiative focused on optimizing our Best Buy Health business that commenced in the first quarter of fiscal 2026. Refer to Note 2, Restructuring, of the Notes to Consolidated Financial Statements, for additional information. 

Goodwill and intangible asset impairments in the third quarter and first nine months of fiscal