Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 68

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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1)%Entertainment7%6%11.3 %(18.7)%Services6%6%3.9 %4.0 %Other1%1%3.3 %(12.7)%Total100%100%6.3 %(3.7)%

Notable comparable sales changes by revenue category were as follows:

•Computing and Mobile Phones: The 9.2% comparable sales growth was driven primarily by computing and mobile phones.

•Consumer Electronics: The 3.6% comparable sales growth was driven primarily by digital imaging.

•Appliances: The 4.1% comparable sales decline was driven primarily by large appliances.

•Entertainment: The 11.3% comparable sales growth was driven primarily by gaming.

•Services: The 3.9% comparable sales growth was driven primarily by growth in our membership programs.

International segment gross profit rate increased in the third quarter of fiscal 2026, primarily due to favorable supply chain costs.

International segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates.

International segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher employee compensation expense.

International segment adjusted SG&A decreased in the first nine months of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher credit card processing fees, expenses associated with Best Buy Express locations that opened after the second quarter of fiscal 2025 and higher employee compensation expense.

International segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate. 

International segment adjusted operating income rate increased in the first nine months of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate, partially offset by an unfavorable gross profit rate.

24

Consolidated Non-GAAP Financial Measures

Reconciliations of consolidated operating income, effective tax rate and diluted EPS (GAAP financial measures) to consolidated adjusted operating income, adjusted effective tax rate and adjusted diluted EPS (non-GAAP financial measures), respectively, were as follows ($ in millions, except per share amounts):

Three Months EndedNine Months EndedNovember 1, 2025November 2, 2024November 1, 2025November 2, 2024Operating