Best Buy Co., Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Best Buy's first quarter fiscal year 2020 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. At that time, if you have a question, you will need to press star 1 on your phone. If you choose to be taken out of the question queue, please press star 2. As a reminder, this call is being recorded for playback and will be available by approximately 1 p.m. Eastern Time today. If you need assistance on the call at any time, please press star zero and an operator will assist you. I will now turn the conference over to Molly O'Brien, Vice President of Investor Relations. Please go ahead.

Thank you and good morning, everyone. Joining me on the call today are Hubert Joly, our Chairman and CEO. Hello. Corey Berry, our CFO and Chief Transformation Officer, and Mike Mohan, our U.S. Chief Operating Officer. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release, which is available on our website. Some of the statements we will make today are considered forward-looking within the meeting of the Private Securities Litigation Reform Act of 1995. These statements may address the financial condition, business initiative, growth plans, investments, and expected performance of the company, and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's current earnings release and our most recent 10-K for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. I will now turn the call over to Hubert.

Thank you, Maureen. Good morning, everyone. Thank you for joining us for this, my last earnings call as CEO of this great company. As you know, we made an exciting announcement last month. On June 11th, Corey Barry will become the fifth CEO in Best Buy's 53-year history. At that time, I will transition to the newly created role of Executive Chairman of the Board. Also, Mike Mohan's role will be elevated as he moves from being our domestic Chief Operating Officer to the company's President and Chief Operating Officer. I am very proud of the seamless transition we've decided to implement as it reflects positively on our momentum as well as in our focus on executive development and succession planning. It is clearly designed to ensure strategic and leadership continuity, and I'm grateful to the members of our Board of Directors for their diligence and care in overseeing this critical process. Before I share more thoughts on our leadership transition, let me first review our quarterly performance and provide an update on our progress as we implement our Best By 2020 Building the New Blue strategy. I will then turn the call over to Corey for additional details on our financial results and outlook. was a strong quarter and a good start to the year. We reported $9.14 billion in revenue and grew our enterprise comparable sales by 1.1%, which was at the high end of our guidance. We also delivered better than expected profitability. We expanded our non-GAAP operating income rate by 50 basis points and delivered non-GAAP diluted EPS of $1.02, which was up 24% compared to the first quarter of last year. And I want to thank our associates across the company for their hard work and dedication in delivering these strong results. Before I discuss the progress we made on our Best Buy 2020 strategy, I'd like to share some brief thoughts on tariffs on goods from China. First, let me say that the administration has so far done a very good job of minimizing the impact of tariffs on U.S. consumers by limiting the number of consumer products on the tariff list. They've done this in part by taking inputs from companies like us. And so far, we've been able to minimize the impact of these tariffs by employing a number of mitigation strategies, including by buying products ahead of the tariffs being implemented and by working with our vendors. In addition... Excuse me.