Best Buy Co., Inc.

Q1 2021 Earnings Conference Call

5/27/2021

spk_2: Ladies and gentlemen, thank you for standing by. Welcome to Best Buy's Q one Fy 2022 earnings conference call at this time. All participants are in a listen only mode Later we will conduct a question and answer session and at that time if you have a question you will need to press star one on your phone. If you choose to be taken out of the question Q. Please press star to as a reminder of this call is being recorded for playback and will be available by approximately 11 a.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 call over to molly O'brien, the vice president of investor relations.
spk_0: Thank you and good morning everyone joining me on the call today are cory berry, our ceo matt balloons, our CFO and mike Mohan, our president and Ceo. During the call today we will be discussing both Gap and non GAAp financial measures, a reconciliation of these non GAAp financial measures to the most directly comparable gap 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, investors dot Best Buy dot com. Some of the statements we will make today are considered forward looking
spk_1: within the meaning Of
spk_0: the Private Securities Litigation of Form Act of 1995. These statements may address the financial condition business initiatives, growth plans, investments, unexpected
spk_1: performance of
spk_0: 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 reliefs and our most recent 10K and subsequent 10 queues 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 Cory.
spk_1: Good morning everyone and thank you for joining us. Today. We are reporting record key one financial results which include comparable sales growth of 37% and non gap earnings per share growth of more than 230%. We are lapping an unusual quarter last year that included both periods of high demand and periods when our stores were closed to customer traffic when we compared to two years ago. Our results are very strong. Compared to the first quarter of fiscal 20 revenue is up 27% and our earnings per share are up more than 100%. Customer demand for technology, products and services during the quarter was extraordinarily high. This demand is being driven by continued focus on the home, which encompasses many aspects of our lives, including working, learning, cooking, entertaining, redecorating and remodeling. The demand was also bolstered by government stimulus programs and the strong housing environment. Our teams across the organization met that demand with remarkable execution from our merchant and supply chain teams working behind the scenes to our blue shirts and geek squad agents on the front lines. Our employees once again showed amazing flexibility and execution managing extraordinary volume. Most importantly, they provided exceptional customer service in a safe environment. From a merchandising perspective, we saw strong comparable sales across virtually all product and service categories. The biggest contributors to the hailstorms in the quarter. We're home theater computing and appliances with the extraordinarily high customer demand as well as production and distribution disruptions. Product availability constraints continue to be a theme during key one as they have been throughout the pandemic, particularly in large appliances, computing, televisions and gaming. Our teams collaborated closely and effectively with our vendors to bring in as much inventory as possible. This is a testament to the trust and unique relationships that are merchants have built with vendors over decades of partnership. Our results this quarter also highlights the strength of our supply chain. We were able to efficiently move the amount of inventory necessary to drive 37% comp sales growth while navigating record demand across retail, container shortages and port congestion. We also improved our speed to customer as our online sales package delivery was not only much faster than last year, it was faster than two years ago. Pre pandemic, In fact, same day delivery to customers homes was up 90% on a year over year basis. In addition, we continue to leverage our stores to drive fast and convenient fulfillment of online orders. In Q. one, about 60% of our online revenue was either picked up in store or curbside shipped from a store or delivered by a store employee, which is becoming an increasingly important aspect of our delivery experience. The% 44 similar to last year's first quarter. The strong performance would not have been possible without an amazing and resourceful team of people and the multi year in.
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