bby-20250802

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-9595

BEST BUY CO., INC.

(Exact name of registrant as specified in its charter)


Minnesota						41-0907483
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

7601 Penn Avenue South Richfield, Minnesota						55423
(Address of principal executive offices)						(Zip Code)

(612) 291-1000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.10 par value per share	BBY	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The registrant had 210,101,265 shares of common stock outstanding as of September 3, 2025.

Table of Contents

BEST BUY CO., INC.

FORM 10-Q FOR THE QUARTER ENDED AUGUST 2, 2025

TABLE OF CONTENTS

Part I — Financial Information

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of August 2, 2025, February 1, 2025, and August 3, 2024

Condensed Consolidated Statements of Earnings for the three and six months ended August 2, 2025, and August 3, 2024

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended August 2, 2025, and August 3, 2024

Condensed Consolidated Statements of Cash Flows for the six months ended August 2, 2025, and August 3, 2024

Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended August 2, 2025, and August 3, 2024

Notes to Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Part II — Other Information

Item 1.

Legal Proceedings

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

WEBSITE AND SOCIAL MEDIA DISCLOSURE

We disclose information to the public concerning Best Buy, Best Buy’s products, content and services and other items through our websites in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through this channel may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.

•For information concerning Best Buy and its products, content and services, please visit: https://bestbuy.com.

•For information provided to the investment community, including news releases, events and presentations, and filings with the SEC, please visit: https://investors.bestbuy.com.

•For the latest information from Best Buy, including press releases, please visit: https://corporate.bestbuy.com/archive/.

* These corporate websites, and the contents thereof, are not incorporated by reference into this Quarterly Report on Form 10-Q nor deemed filed with the SEC.

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

$ in millions, except per share amounts (unaudited)


	August 2, 2025		February 1, 2025		August 3, 2024
Assets
Current assets
Cash and cash equivalents	$	1,456	$	1,578	$	1,387
Receivables, net	917		1,044		871
Merchandise inventories	5,816		5,085		5,706
Other current assets	688		517		598
Total current assets	8,877		8,224		8,562
Property and equipment, net	2,046		2,122		2,183
Operating lease assets	2,816		2,833		2,860
Goodwill	908		908		1,383
Other assets	606		695		636
Total assets	$	15,253	$	14,782	$	15,624

Liabilities and equity
Current liabilities
Accounts payable	$	5,682	$	4,980	$	5,542
Unredeemed gift card liabilities	230		253		243
Deferred revenue	889		951		940
Accrued compensation and related expenses	448		464		347
Accrued liabilities	684		741		756
Current portion of operating lease liabilities	610		617		610
Current portion of long-term debt	10		10		13
Total current liabilities	8,553		8,016		8,451
Long-term operating lease liabilities	2,292		2,282		2,316
Long-term debt	1,164		1,144		1,157
Long-term liabilities	528		532		593
Contingencies (Note 10)
Equity
Best Buy Co., Inc. Shareholders' Equity
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none	-		-		-
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 210.4 million, 211.4 million and 215.0 million shares, respectively	22		22		22
Additional paid-in capital	-		-		-
Retained earnings	2,381		2,486		2,775
Accumulated other comprehensive income	313		300		310
Total equity	2,716		2,808		3,107
Total liabilities and equity	$	15,253	$	14,782	$	15,624

NOTE: The Consolidated Balance Sheet as of February 1, 2025, has been condensed from the audited consolidated financial statements.

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

Condensed Consolidated Statements of Earnings

$ and shares in millions, except per share amounts (unaudited)


	Three Months Ended				Six Months Ended
	August 2, 2025		August 3, 2024		August 2, 2025		August 3, 2024
Revenue	$	9,438	$	9,288	$	18,205	$	18,135
Cost of sales	7,244		7,102		13,962		13,885
Gross profit	2,194		2,186		4,243		4,250

Selling, general and administrative expenses	1,829		1,810		3,550		3,547

Restructuring charges	114		(7)		223		8
Operating income	251		383		470		695

Other income (expense):
Loss on disposal of subsidiaries	(4)		-		(4)		-
Investment income and other	18		21		33		46
Interest expense	(12)		(13)		(24)		(25)
Earnings before income tax expense and equity in income of affiliates	253		391