Best Buy : 2025 Annual Report Annual Report

Fiscal 2025 Annual Report

A message from

CEO Corie Barry

Dear fellow shareholders,

I am pleased to highlight the progress Best Buy has made during fiscal 2025 and share our plans for the year ahead.

First, I want to extend my gratitude to our incredible team of more than 80,000 employees, whose remarkable creativity, commitment and enthusiasm continue to fuel Best Buy.

Despite facing a volatile business environment, our employees remained steadfast in their focus on serving our customers. Their disciplined operational execution and deep commitment to creating inspiring experiences for consumers, helped Best Buy achieve positive comparable sales in the fourth quarter of the fiscal year. It was the first quarter

of positive comparable sales growth since the third quarter of fiscal year 2022. This significant achievement underscores the team's talent and resilience.

We also launched our bold, new branding and, in partnership with our vendors, made strategic

investments in both our digital business and our in-store experiences. By emphasizing personalization and igniting elements of discovery, these investments have elevated customer experiences across all touchpoints.

Our My Best Buy membership program had higher engagement across all three tiers and ended the year with nearly 8 million paid members. My Best Buy not only provides value to members but also serves as

a source of growth for our rich, first-party data. Our data, in turn, fuels other major initiatives, like our retail media network, Best Buy Ads.

We continued to build and scale new profit streams, setting the stage, we believe, for accelerated growth. We expect fiscal 2026 will be pivotal for Best Buy Ads, and we anticipate that the rollout of our U.S. Marketplace will provide further growth opportunities - and better experiences for our customers - in our core business.

In addition, we returned $1.3 billion to shareholders through share repurchases and dividends. We continued to demonstrate our commitment to being a premium dividend payer and increased our quarterly dividend to $0.95 per share in fiscal 2026. We are incredibly proud of the fact that we have raised our quarterly dividend for 12 consecutive years.

As we stay focused on optimizing our business and unique position in the market, I strongly believe that the true key to success lies in the passion and talent of our people. Our ongoing efforts in onboarding, training and fostering a stable and engaging culture led to remarkable achievements, and I am truly energized by the results. In fiscal 2025, we had the lowest employee turnover in six years and achieved record high employee engagement scores.

Our dedication to each team member is grounded in the company's values and amplified by our commitment to a culture of belonging. One of

our core values is unleashing the power of our people - not just one, but all of our employees. We fundamentally believe that creating a vibrant culture generates better business outcomes and creates

a place where every employee can bring their best qualities, driving long-term value creation.

Priorities for the year ahead

As we enter fiscal 2026, we are excited to build on the momentum from this past year.

Technology is part of everything we do, from routine tasks to discovering innovative ways to unlock potential. This is where Best Buy's unique approach truly shines. As the leading specialty consumer electronics retailer offering a full range of products, services, and expert guidance, we don't just help customers make the most of their technology -

we inspire them to explore the possibilities they never imagined. This unique combination is what empowers us to bring our vision to life: to humanize and personalize technology solutions for every stage of life.

As we look ahead, we believe there are exciting opportunities for the consumer electronics industry. This is supported by three key trends:

1. The pandemic drove incremental growth, creating a larger install base of technology products in consumers' homes.

2. Continued demand is driven by natural upgrade and replacement cycles, fueled by both necessity and the desire for improved performance.

3. Innovation is the cornerstone of this industry and is becoming more purposeful and impactful, focusing on enhancements that are meaningful to customers.

With that in mind, our focus for the year is to strengthen our position in retail as the leading omnichannel destination for technology, while at the same time building and scaling new profit streams that we believe will drive robust returns in the future. We have set three priorities to achieve this.

1. Drive omnichannel experience improvements that resonate with our customers.

2. Launch and scale incremental profit streams, including Best Buy Marketplace and Best Buy Ads.

3. Drive operational effectiveness and efficiency to fund strategic investments and offset pressures.

Of course, these priorities are intertwined and work seamlessly together, as a great customer experience drives the level of opportunity to generate incremental profit streams. This interconnected progress will carry us further forward, with an eye toward even greater momentum in the long-term.

I am incredibly proud of and inspired by the progress and momentum this adaptable team has created together. They have done so in ways that have been core to Best Buy since our founding in 1966, and that's by carefully and thoughtfully balancing the needs of our teams, customers, vendor partners, communities and shareholders. Our future is full

of opportunity, and I look forward to our many possibilities ahead.

Thank you, shareholders, for your continued support of this extraordinary company.

Respectfully,

Corie Barry, CEO, Best Buy Co., Inc.

This report contains forward-looking statements. Please refer to "CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES

LITIGATION REFORM ACT OF 1995" in the accompanying Annual Report on Form 10-K for further information.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K (Mark One)

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

For the fiscal year ended February 1, 2025

OR

 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)

7601 Penn Avenue South Richfield, Minnesota

(Address of principal executive offices)

[phone]

(Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:

(I.R.S. Employer Identification No.)

55423

(Zip Code)

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

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No 

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  No 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  No

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.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

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

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of August 2, 2024 (the last business day of the registrant's most recently completed second fiscal quarter) was approximately $15.8 billion, computed by reference to the price of $82.36 per share, the price at which the common equity was last sold on August 2, 2024, as reported on the New York Stock Exchange-Composite Index. (For purposes of this calculation, all of the registrant's directors and executive officers are deemed affiliates of the registrant.)

As of March 17, 2025, the registrant had 211,369,657 shares of its common stock, $0.10 par value per share, issued and outstanding.