Best Buy Announces Holiday Revenue Results

  Best Buy Announces Holiday Revenue Results

                     Domestic comparable store sales flat

                       Free cash flow guidance updated

Business Wire

MINNEAPOLIS -- January 11, 2013

Best Buy Co., Inc. (NYSE: BBY) today announced revenue of $12.8 billion for
the nine weeks ended January 5, 2013 compared to $12.9 billion for the nine
weeks ended December 31, 2011.

Fiscal 2013 Holiday Revenue Summary
($ billion)
                                                         Comparable Store
                                            Sales %
                                                         Change^1
                                       Revenue           9 weeks ended
                                       %
                                                         Jan.            Dec.
                     Revenue           Change            5,         31,
                                                         2013            2011
Total company        $12.8             (0.4)             (1.4)           (0.4)
Domestic             $9.9              (1.2)             0.0             0.3
segment
International        $2.9              2.2               (6.4)           (3.1)
segment
                                                                         

"One of the first priorities of our Renew Blue strategy is to stabilize and
then begin improving our comparable store sales. During the most important
period in the retail calendar – the holiday sales season – we were able to
improve our Domestic comparable store sales trends compared to the performance
of the last several quarters and continue our strong traffic growth in our
online business. Our holiday selling strategy, backed by a compelling
assortment, increased employee training and price match policy, allowed us to
deliver these results," said Best Buy President and CEO Hubert Joly. "While it
will be a journey with ups and downs, we are focused on becoming an
increasingly effective multi-channel retailer and engaging with the tens of
millions of consumers who shop us online and in-store," Joly added.

Best Buy’s Domestic segment online channel delivered revenue of $1.1 billion,
a 10 percent revenue increase compared to the prior-year period, driven by a
traffic increase. Best Buy’s strong online performance was recognized by
various third parties, in particular:

  *ComScore indicated Best Buy was in the top three most trafficked websites
    for the Thanksgiving holiday and Black Friday
  *Experian data ranked Best Buy as the No. 3 retail website on Cyber Monday
    with 9.3 million visits

Domestic comparable store sales for the period were flat. The company recorded
positive comparable store sales growth in mobile phones, tablets/eReaders and
appliances. In contrast, comparable store sales in entertainment, televisions
and computing declined.

The International segment comparable store sales decline of 6.4 percent was
driven by comparable store sales declines in Canada and China. Sales results
for all countries in the International segment other than Canada are reported
on a one-month lag.

Fiscal 2013 Financial Guidance

Driven by solid performance in the holiday period, comparable store sales,
gross margin, earnings and inventory levels continue to be in line with the
assumptions that supported the company’s fiscal year 2013 free cash flow^2
guidance provided on November 20, 2012 that was in the range of $850 million
to $1.05 billion. Accounts payable as a percentage of inventories, however,
which was assumed to be consistent with prior year, is now expected to be
lower than prior year due to (1) the earlier than expected receipt, and
therefore payment of, inventory purchases and (2) a shift in sales mix to
higher velocity merchandise categories that carry shorter payment terms (note:
overall vendor payment terms were consistent with prior year). As a result,
the company now expects free cash flow for fiscal year 2013 to be
approximately $500 million.As consistent with previous guidance, this free
cash flow estimate excludes the impact of previously announced restructuring
activities and change in restricted cash related to working capital.

(1) ^ Best Buy’s comparable store sales is comprised of revenue at stores,
call centers, and websites operating for at least 14 full months as well as
revenue related to other comparable sales channels. Relocated stores, as well
as remodeled, expanded, and downsized stores closed more than 14 days, are
excluded from the comparable store sales calculation until at least 14 full
months after reopening. Acquired stores are included in the comparable store
sales calculation beginning with the first full quarter following the first
anniversary of the date of the acquisition. The portion of the calculation of
the comparable store sales percentage change attributable to the International
segment excludes the effect of fluctuations in foreign currency exchange
rates. The method of calculating comparable store sales varies across the
retail industry. As a result, Best Buy’s method of calculating comparable
store sales may not be the same as other retailers’ methods. Online revenue is
included in Best Buy’s same store sales calculation.

(2) Best Buy defines free cash flow as total cash provided by (used in)
operating activities less additions to property and equipment. This non-GAAP
financial measure assists investors in making a ready comparison of the
company’s expected free cash flow for the year ending February 2, 2013,
against the company’s results for the respective prior-year periods and
against management’s previously provided expectations. The company’s free cash
flow guidance excludes the impact of previously announced restructuring
activities and includes an expected benefit from a change in restricted cash
related to working capital, which is included within investing activities on
the condensed consolidated statements of cash flows. This non-GAAP financial
measure should not be considered superior to, as a substitute for, or as an
alternative to, and should be considered in conjunction with, GAAP financial
measures and may differ from similar measures used by other companies.

Forward-Looking and Cautionary Statements:

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 as contained in Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 that reflect management’s current views and estimates regarding
future market conditions, company performance and financial results, business
prospects, new strategies, the competitive environment and other events. You
can identify these statements by the fact that they use words such as
“anticipate,” “believe,” ”assume,” “estimate,” “expect,” “intend,” “project,”
“guidance,” “plan,” “outlook,” and other words and terms of similar meaning.
These statements involve a number of risks and uncertainties that could cause
actual results to differ materially from the potential results discussed in
the forward-looking statements. Among the factors that could cause actual
results and outcomes to differ materially from those contained in such
forward-looking statementsare the following: general economic conditions,
changes in consumer preferences, credit market constraints, acquisitions and
development of new businesses, divestitures, product availability, sales
volumes, pricing actions and promotional activities of competitors, profit
margins, weather, natural or man-made disasters, changes in law or
regulations, foreign currency fluctuation, availability of suitable real
estate locations, the company’s ability to react to a disaster recovery
situation, the impact of labor markets and new product introductions on
overall profitability, failure to achieve anticipated benefits of announced
transactions, integration challenges relating to new ventures and
unanticipated costs associated with previously announced or future
restructuring activities. A further list and description of these risks,
uncertainties and other matters can be found in the company’s annual report
and other reports filed from time to time with the Securities and Exchange
Commission, including, but not limited to, Best Buy’s Annual Report on Form
10-K filed with the SEC on May 1, 2012. Best Buy cautions that the foregoing
list of important factors is not complete, and any forward-looking statements
speak only as of the date they are made, and Best Buy assumes no obligation to
update any forward-looking statement that it may make.

About Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE: BBY) is the global leader in consumer
electronics.We offer a unique promise to our large and loyal customer base
including the latest devices and services; competitive prices; and the ability
to shop when and where you want. Additionally, our “Blue Shirt” sales
associates and Geek Squad agents are the authority on consumer electronics,
delivering unbiased, knowledgeable advice hundreds of millions of times a year
and offering unmatched support for the lifetime of the products we sell. Shop
online at http://www.bestbuy.com/ or stop by one of our Best Buy or Best Buy
Mobile stores to touch, test and try the latest technology. To learn more
about Best Buy, visit us at http://www.investors.bestbuy.com/. Find us on
Facebook at https://www.facebook.com/bestbuy and follow us on Twitter at
@BestBuy.

BEST BUY CO., INC.
REVENUE CATEGORY SUMMARY
(Unaudited and subject to reclassification)
                                                            
Domestic Segment Summary
                          Revenue Mix Summary          Comparable Store Sales
                          Nine Weeks Ended             Nine Weeks Ended
                          Jan. 5,          Dec.        Jan. 5,        Dec. 31,
                          2013             31,         2013           2011
                                           2011
Consumer                  36%              39%         (7.0%)         (3.5%)
Electronics
Computing and             42%              36%         14.0%          13.7%
Mobile Phones
Entertainment             13%              16%         (17.8%)        (16.3%)
Appliances                4%               4%          10.7%          14.8%
Services^(1)              4%               4%          (3.1%)         (3.4%)
Other                     1%               1%          n/a            n/a
Total                     100%             100%        0.0%           0.3%
                                                                      
                                                                      
                                                                      
International Segment Summary
                          Revenue Mix Summary          Comparable Store Sales
                          Nine Weeks Ended             Nine Weeks Ended
                          Jan. 5,          Dec.        Jan. 5,        Dec. 31,
                          2013             31,         2013           2011
                                           2011
Consumer                  26%              22%         (16.0%)        (6.8%)
Electronics
Computing and             52%              57%         0.3%           1.7%
Mobile Phones
Entertainment             8%               7%          (16.0%)        (15.4%)
Appliances                8%               8%          (12.3%)        2.0%
Services^(1)              6%               6%          6.3%           (5.7%)
Other                     <1%              <1%         n/a            n/a
Total                     100%             100%        (6.4%)         (3.1%)
                                                                      
(1) The "Services" revenue category consists primarily of service contracts,
extended warranties, computer related services, product repair and delivery
and installation for home theater, mobile audio and appliances.

Contact:

Best Buy Co., Inc.
Investor Contacts:
Bill Seymour, 612-291-6122
Vice President, Investor Relations
bill.seymour@bestbuy.com
or
Mollie O’Brien, 612-291-7735
Director, Investor Relations
mollie.obrien@bestbuy.com
or
Media Contact:
Amy von Walter, 612-291-4490
Senior Director, Public Relations
amy.vonwalter@bestbuy.com