Highlights from Best Buy (BBY) Q4 Conference Call: Continues To Gain Market Share

March 26, 2009 3:24 PM EDT

Best Buy (NYSE: BBY) is trading up 11% in mid-day trading after announcing results ahead of the Street consensus. Best Buy topped the Street view by 21 cents. Best Buy also guides higher, saying it sees FY10 EPS $2.50-$2.90, versus the consensus of $2.47. Best Buy expects to open 65 new stores in FY10.

Below are some highlights from BestBuy Q4 conference call:

• Revenue of $45 billion is an increase of 13% compared with $40 billion for the prior year.
  
• Dramatically slowing its SG&A and capital spending growth in fiscal 2010.
  
• Cut capital spending roughly in half, in large part because we will open fewer stores.
  
• Added 213 net stores over the past 12 months.
  
• Best Buy grew market share in excess of original expectations and continued to improve customer satisfaction and employee retention metrics.
  
• Q4 comparable store sales decline was approximately 4.9%
  
• Revenue in the international segment was largely consistent with the expectations for the quarter.
  
• Best Buy's domestic comparable store inventory was down 15%, thus managing working capital effectively.
  
• Best Buy expects consumer spending to remain challenged in '10 and plans to invest in focused area that will position Best Buy for long-term growth while maintaining the health and flexibility of the enterprise.
  
• Expects comp store sales decline to be larger in the first half of the year especially when Best Buy compares against the stronger comps in the first and second quarter of last year.
  
• Best Buy expects to generate free cash flow which we define as operating cash flow less CapEx in excess of a $1 billion for fiscal 2010 which is a significant improvement over fiscal 2009.

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