Best Buy (BBY) exceeded analysts’ revenue expectations in all the four quarters of fiscal 2019. The company’s revenue grew in the first three quarters of fiscal 2019 but declined 3.7% to $14.8 billion in the fourth quarter. However, the company’s fourth-quarter revenue exceeded analysts’ expectation of $14.7 billion. The revenue decline in the fourth quarter of fiscal 2019 was primarily caused by the impact of an additional week in the fourth quarter of fiscal 2018 and store closures. Best Buy’s same-store sales grew 3.0% in fiscal 2019’s fourth quarter with the Domestic segment and International segment generating same-store sales growth of 3.0% and 2.5%, respectively.
Overall, Best Buy’s revenue grew 1.7% to $42.9 billion in fiscal 2019. Best Buy’s same-store sales rose 4.8% in fiscal 2019.
Expectations for top-line growth
Best Buy forecasted its revenue for the first quarter of fiscal 2020, which ended on May 4, to be in the range of $9.05 billion to $9.15 billion compared to $9.11 billion in fiscal 2019’s first quarter. Best Buy expects its first-quarter same-store sales growth in the range of 0.0% to 1.0%. Analysts expect Best Buy’s first-quarter revenue to rise 0.3% to $9.14 billion.
For the full-year fiscal 2020, Best Buy forecasted revenue in the range of $42.9 billion–$43.9 billion compared to $42.9 billion in fiscal 2019. Best Buy expects fiscal 2020 same-store sales growth of 0.5%–2.5%. Analysts currently expect Best Buy’s fiscal 2020 revenue to rise 1.6% to $43.6 billion.
Best Buy’s revenue outlook reflects the expected slowdown in the console gaming category and the mature phase of the mobile phones category. Uncertain macro conditions are also expected to weigh on the company’s revenue.