Best Buy Co Inc (NYSE:BBY) stock rose 2% (As on March 4, 11:15:25 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY25. The company’s domestic segment generated revenue of $12.58 billion, down 1.1% YoY, with the largest declines in home theater and appliances, partially offset by growth in computing and mobile phones. Domestic gross profit rate of 20.9% remained approximately flat, as growth in Best Buy Ads and Marketplace offset lower product margin rates. Domestic online revenue of $4.91 billion decreased 2.3% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 39.0% versus 39.5% last year. International revenue of $1.24 billion increased 0.5% versus last year. The revenue increase was primarily driven by the favorable impact of foreign exchange rates, which was partially offset by a comparable sales decline of 1.3%. For fiscal 2026, Best Buy returned to positive comparable sales growth of 0.5% and expanded its operating income rate. The board approved a 1% dividend increase to $0.96 per share, payable April 14, 2026.
BBY in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.61, beating the analysts’ estimates for the adjusted earnings per share of $2.47. The company had reported the adjusted revenue decline of 1 percent to $13.81 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $13.91 billion. Comparable sales decreased 0.8% for the quarter. International gross profit rate was 20.5% versus 21.4% last year.
Additionally, in Q4 FY26, the company returned a total of $272 million to shareholders through dividends of $199 million and share repurchases of $73 million. In FY26, the company returned a total of $1.07 billion to shareholders through dividends of $801 million and share repurchases of $273 million. The company expects to spend approximately $300 million on share repurchases during FY27.
The company issued fiscal 2027 guidance with adjusted EPS of $6.30 to $6.60, with a midpoint of $6.45 that falls below the analyst consensus of $6.65. Revenue guidance of $41.2 billion to $42.1 billion, with a midpoint of $41.65 billion, also came in below the $42.2 billion consensus.
For the first quarter, Best Buy expects comparable sales growth of approximately 1% and an adjusted operating income rate of approximately 3.9%. Shares surged 14.1% following the results.