Best Buy Co., Inc. (NYSE: BBY) was caught up in the general market gloom, and, despite surpassing financial expectations for its fourth quarter, got tagged on equity markets Thursday.
The Minneapolis-based company reported domestic revenue of $13.85 billion increased 2.6% versus last year. The increase was driven by comparable sales growth of 3.4%, partially offset by the loss of revenue from store closures in the past year.
Domestic gross profit rate was 21.2% versus 22.1% last year. The gross profit rate decrease of approximately 90 basis points was primarily driven by mix into lower-margin products, a lower gross profit rate in the services category and the impacts associated with tariffs on goods imported from China.
Best Buy also provided the following full-year FY21 financial outlook: Enterprise revenue is projected $43.3 billion to $44.3 billion. Enterprise comparable sales growth is foreseen flat to 2.0% Non-GAAP effective income tax rate of approximately 23.0%. Non-GAAP diluted EPS of $6.10 to $6.30.
Said CFO Matt Bilunas, "As we enter FY21, we are closely monitoring the developments related to the coronavirus outbreak. This is a very fluid situation, which makes it difficult to determine exact financial impacts from disruptions in supply chain. Based on what we know today, we have assumed the majority of the impacts occur in the first half of the year."
BBY shares skidded $2.55, or 3.1%, Thursday to $79.63.
