Best Buy Co. Inc.

Q3 results: profitability held up despite softer sales - Revenue: $9.4B, -2.9% comp (YOY). - Non-GAAP operating income rate: 3.7%, essentially in-line vs expectations; -10 bps YOY. - Gross margin improved +60 bps YOY, largely from membership/services improvements; SG&A was in line but rose as a % of revenue due to weaker top-line. - Comparable sales: -2.9% vs guidance of ~-1%. - Main headwind: customer demand was weaker than forecast in September/October, attributed to macro uncertainty, customers waiting for deals, election-period distraction, especially in nonessential categories; demand improved again in recent weeks.

Category & channel highlights: computing strength and strong omnichannel execution - Domestic computing & tablets posted +5.2% comp YOY; laptops +7% YOY in Q3. - Customers remained deal-focused, and many categories were more promotional (especially appliances) to stimulate demand. - Omnichannel: Q3 online sales $2.7B = 31% of domestic revenue. - Fulfillment speed: ~60% of packages delivered/pickup within 1 day; digital pickup ~45% of domestic digital sales, and >90% of those orders available within 30 minutes.

Q4 & full-year forecast: comps expected weak-to-flat; margin rate guidance maintained - Q4 comp outlook (revised): flat to -3% (higher end implies sequential improvement; lower end similar to Q3 softness). - Management cited factors making holiday comps less straightforward: shorter holiday season, promotional calendar shifts, calendar timing. - Q4 non-GAAP operating income rate: 4.6% to 4.8% (vs 5.0% last year; last year included an extra week providing a benefit estimated ~40 bps). - Full-year non-GAAP operating income rate maintained: 4.1% to 4.2% (vs 4.0% last year on a 52-week basis). - Full-year revenue guidance: $41.1B to $41.5B; comps: -2.5% to -3.5%. - EPS: $6.10 to $6.25 (non-GAAP). - Profitability supports: gross profit rate expected to expand ~40 bps for the year; SG&A decline expected over $200M vs last year (benefits include one less fiscal week, payroll/S&G ratio discipline, and lower incentive comp; partially offset by higher advertising/tech spend).