Best Buy (BBY) 10-K risk factor changes: FY2025 vs FY2024

The risks described below highlight potential events, trends or other circumstances that could adversely affect our business, financial condition, results of operations, cash flows, [removed: liquidity,] [added: liquidity] or access to sources of financing and, consequently, the market value of our common stock and debt instruments.

Macroeconomic [removed: pressures, including, but not limited to, the current geopolitical climate,] [added: pressures] may adversely affect consumer spending and our financial results.

To varying degrees, our products and services are sensitive to changes in macroeconomic [removed: conditions that impact consumer spending.][added: conditions.]

their choice of brand, model or price-point; [added: and]

how frequently they upgrade or replace their devices; [removed: and]

[removed: Real] [added: Consumer demand for the products and services that we offer could be affected by a number of factors, including: real] GDP growth, [removed: inflation (including wage inflation),] [added: inflation, recession,] consumer confidence, [removed: phasing out of public-health-emergency supports,] employment levels, [removed: oil prices, interest,] [added: cost of living,] tax [removed: and foreign currency exchange] rates, availability of consumer financing, [added: interest rates,] housing market conditions, [removed: limitations on a government’s ability to borrow and/or spend capital, cost] [added: foreign currency exchange rates, the price] of [removed: living (e.g., food, fuel), any recession (and resulting corresponding declines in consumer sentiment)] [added: oil, gas] and other [removed: macroeconomic trends can adversely affect consumer demand for the products] [added: commodities,] and [removed: services that we offer.][added: other macroeconomic trends.]

[removed: In addition to general levels of inflation, we] [added: We] are [removed: also] subject to [removed: risks of] specific [removed: inflationary] pressures [removed: on] [added: that may increase our] product [removed: prices due to, for example,] [added: prices, including] high consumer [removed: demand] [added: demand, inflation, tariffs] and supply chain disruptions.

[removed: The conflict] [added: Ongoing or emerging conflicts, including those] in [removed: Ukraine has exacerbated global geopolitical tensions,] [added: Ukraine, the Middle East] and [added: the South China Sea,] may continue to [removed: significantly] impact fuel prices, inflation, the global supply chain, cybersecurity and other macroeconomic conditions, which may further adversely affect global economic growth, consumer confidence and demand for our products and services.

[removed: Further] [added: Additionally, any further] deterioration of relations between Taiwan and China, the resulting actions taken, the response of the international community and other factors affecting trade with China or political or economic conditions in Taiwan could disrupt the manufacturing [added: and distribution] of products or hardware components in the region, such as semiconductors and television panels sourced from Taiwan or the broader array of products sourced from China.

[removed: Additionally,] [added: For example,] attacks on cargo ships in the Red Sea, catalyzed by [added: tensions in] the [removed: Israel-Hamas War, have disrupted Red Sea shipping lanes and may] [added: Middle East,] continue to disrupt global trade flows and [removed: impact] shipping capacity.

The risk [removed: or] [added: and] actual occurrence of various catastrophic events could have a material adverse effect on our financial performance.

natural disasters or extreme weather events (such as [added: storms, blizzards, extreme temperatures,] earthquakes, [added: hurricanes,] floods, fires and droughts), including those related to, or exacerbated by, climate change;

power loss, telecommunications failures, or software [removed: or] [added: and] hardware malfunctions; [removed: or][added: and]

[removed: In recent years, we observed an increase in the] [added: The] number and severity of certain catastrophic events [added: is increasing] in many of our markets.

Additionally, heightened [removed: social unrest and] violence and crime in or around our stores, customer homes or businesses where we are performing services may further jeopardize the safety and security of our workforce and [removed: customers.][added: customers as well as the general operation of our stores.]

Catastrophic events can also disrupt [removed: or disable] portions of our supply chain, distribution network and third-party [removed: business operations that] [added: services, and] may impact our ability to procure goods or services required for [removed: business operations at the quantities and levels we require.][added: operating our business.]

[removed: Finally, such] [added: Such] events can also affect our information technology systems, resulting in disruption to various aspects of our operations, including our ability to transact with customers and fulfill orders.

Three of our largest states by total sales (California, Texas and Florida) are [removed: areas where] [added: particularly vulnerable to] natural disasters and extreme weather [removed: conditions have been, and could continue to be, more prevalent.][added: conditions.]

Natural disasters and climate-related events in [removed: those states] [added: these states,] and other areas where our sales and operations are [removed: concentrated] [added: concentrated,] could result in significant physical damage [removed: to] [added: to,] or closure [removed: of] [added: of,] our [removed: stores, distribution centers or other facilities.][added: facilities and may require upgrades to our facilities and infrastructure.]

Further, [removed: current events associated with] social [removed: injustice or inequality, along with the ensuing social activism, tension] [added: unrest/tension,] and [added: any related] potential for violence, may impact our workforce, customers, properties and the communities where we operate.

If our [removed: customers and] [added: customers,] employees [added: and shareholders] do not perceive our response to be appropriate or [removed: adequate for a particular region or for our company as a whole,] [added: adequate,] we could suffer damage to our reputation and brand, which could adversely affect our business.

As a consequence of these [removed: or other] catastrophic events, we may experience [removed: interruption] [added: interruptions] to our operations or losses of property, equipment and/or inventory, which could adversely affect our revenue and profitability.

Many of the products we sell are highly susceptible to technological advancement, product [removed: life cycle] [added: life-cycle] fluctuations and changes in consumer preferences.

We operate in a [removed: highly,] [added: highly and] increasingly dynamic industry sector fueled by constant technological innovation and disruption, including most recently by the proliferation of artificial intelligence (“AI”) technologies.

These factors manifest in a variety of ways: the emergence of new products and categories, the rapid maturation of categories, cannibalization of categories, changing price [removed: points] [added: points,] and product replacement and upgrade cycles.

failure to [removed: offer] [added: offer, or inability to secure an adequate supply of,] the products and services that our customers want;

We compete [removed: with] [added: against] many local, regional, national and international retailers (both online and brick and mortar), as well as [added: against] some of our vendors and mobile network carriers that market their products directly to consumers.

[removed: Competition is becoming increasingly diverse, including in the advertising revenue space and] [added: Diverse competition] may also [removed: result] [added: arise] from new entrants into the markets we serve, including [removed: unforeseen] [added: unexpected] players [removed: that may be able to] [added: who could] more aggressively leverage technologies [removed: (for example] [added: such as] AI and platform [removed: integrations).][added: integrations.]

Our strategy of offering high-quality services and assistance for our customers requires a highly trained and engaged [removed: workforce.][added: workforce, which is reliant on the creation and maintenance of a positive culture that is attractive to all qualified employees and beneficial relationships between employees and the enterprise.]

The turnover rate in the retail sector is relatively [removed: high] [added: high,] and there is an ongoing need to recruit and train new employees.

Factors that affect our ability to maintain sufficient numbers of qualified employees include, for example, employee engagement, our reputation, [added: our ability to train and develop our employees, our ability to connect with and promote available talent pools, our development and maintenance of employer-desired policies and practices,] unemployment rates, competition from other employers, availability of qualified personnel and our ability to offer appropriate compensation and benefit packages.

In addition, significant turnover of our executive team or other employees in key positions with specific knowledge relating to our operations and industry may negatively impact our [removed: operations.][added: operations and financial results.]

[removed: Our] [added: The execution of our] strategy [added: relating] to [removed: expand into new] [added: certain] products and services (including health technology, services and logistics) brings [removed: new] business, financial and regulatory risks.

[removed: These offerings] [added: Our customers] may [removed: present persistent technology and regulatory challenges] [added: not like our new value propositions,] and we may be subject to claims if customers of these offerings experience service disruptions, failures or other issues.

[removed: Non-compliance] [added: The risk accompanied] with [removed: conditions imposed by regulatory authorities related to any of] [added: operating in] the [removed: above activities] [added: health sector] may lead to a range of consequences, including, but not limited to, customer complaints, individual consumer claims or class actions, product recalls, temporary bans on products, stoppages at production facilities, orders to stop providing services, remediation costs, corrective action plans, fines, penalties, regulatory enforcement actions, potential loss of business and impairment of our ability to continue participation in government healthcare [removed: programs, any of which could adversely affect our operations, financial results and reputation.][added: programs.]

These risks [added: could] include, for example:

[removed: increased] [added: ongoing] pressure on margins from our Best Buy membership offerings, and the risk that increased volumes will not fully compensate for lower [removed: margins, or for loss of revenue and profit from revenue streams that are now included as benefits;][added: margins;]

[removed: use of third-party services] [added: responsibility for third parties] that fail to meet our standards or fail to comply with applicable labor and independent contractor [removed: regulations, leading to potential reputational damage and liability risk;][added: regulations;]

the potential for increased scope of liability relating to [removed: managed] services [removed: offerings;][added: offerings provided by third parties on our behalf;]

employees having access to customer devices, including the information held on those devices, which [removed: may increase] [added: increases] our [added: risk given the] responsibility for the security of those devices and the privacy of the data they [removed: hold;][added: hold while in our possession;]

Additionally, the impact of these factors could be compounded with respect to discretionary purchases of consumer electronics.

These macroeconomic conditions impact consumer behavior and spending in various ways, including:

Any decrease in consumer demand due to macroeconomic conditions may negatively impact our financial results.

Additionally, price increases in the products we purchase for resale may require us to adjust our sales prices.

Our ability to increase prices to offset these pressures might be limited, requiring us to absorb these increases within our margins.

Increases in the cost of living may also put pressure on our ability to offer competitive compensation and other employer-provided benefits and may adversely affect our financial results.

Any economic factors or circumstances resulting in higher transportation, labor, insurance costs, healthcare costs or commodity prices can increase our cost of sales and operating, selling, general and administrative expenses and otherwise materially adversely affect our financial results.

Geopolitical pressures may adversely impact our supply chain, the cost of our products or revenues and financial results.

While we directly import approximately 2% to 3% of our overall assortment, our complex supply chain is heavily reliant on vendor imports from China and Mexico, which we currently estimate make up approximately 55% and 20%, respectively, of the products we purchase.

Moreover, the consumer electronics we sell and our underlying technological infrastructure are dependent on rare earth elements, predominantly processed in China.

Recently passed or proposed tariffs involving these countries could have an adverse impact on our operations.

Any further changes in, or uncertainty surrounding, trade policies with these countries, including tariffs on products and parts imported by us or our vendors, as well as any international retaliatory actions, could increase costs, disrupt our supply chain and/or impact the availability of underlying technology critical to our operations.

Additionally, changes in, or uncertainty surrounding, policies or efforts that may affect the flow of trade, especially those impacting critical international trade routes, such as the Panama Canal and the Suez Canal, could potentially cause disruption to the global supply chain and may adversely affect our operations and financial results.

These trade restrictions and any associated political uncertainty surrounding international trade measures and international relations may affect market stability and consumer confidence.

Competition is becoming increasingly diverse, including in the advertising revenue space and with the proliferation of marketplace platforms offering products at increasingly lower prices.

Further, as our competitors develop and expand their strategic use of AI, our operations and profitability could be adversely impacted if we fail to execute or maintain our own focused AI strategy enabling technology advancement and innovation.

Our policies and practices may be affected by, or require changes in response to, legal and regulatory restrictions on policies related to inclusion and belonging, employee engagement and climate change, which may further impact our ability to retain and engage qualified employees.

In the health sector, we offer a range of products and services, including, for example, Personal Emergency Response (PERS) and Remote Patient Monitoring (RPM) technology and services.

As we refine existing offerings and introduce new offerings, we must navigate a complex, dynamic regulatory and technological environment, which may subject us to additional operational, financial and reputational risks.

Our health sector offerings and the customers we serve bring us into scope for many significant regulatory requirements, including those enforced by the U.S. Food and Drug Administration (FDA), the Centers for Medicaid and Medicaid Services (CMS), State Medicaid Agencies and the Federal Communications Commission (FCC).

Additionally, the collection, storage, use and disclosure of personal information subjects us to privacy and security requirements, such as the Health Insurance Portability and Accountability Act (HIPAA), the United Kingdom’s General Data Protection Regulation (GDPR, as retained in United Kingdom law) and numerous state data privacy laws.

The strategy and execution of our service offerings are subject to incremental risks.

inability to sustain and operate a technology infrastructure sufficient to support our services growth;

increased labor expenses and inability to accurately forecast staffing levels to meet customer needs and demands;

increased reputational risk of bad actors posing as Geek Squad and/or customer care;

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Further, our flexibility to modify selling prices is limited due to digital technology that enables consumers to compare prices on a real-time basis.

We may pursue new strategic ventures, including business relationships, acquisitions, and expanding or adding revenue streams, including our retail media network, known as Best Buy Ads, and our marketplace platforms, where third-party sellers can sell their own products on Best Buy’s platform (“Marketplace”) (collectively “Strategic Ventures”).

failure to identify or appropriately evaluate the risks of Strategic Ventures in our diligence assessments;

state or local regulations that may limit our ability to execute certain aspects of our Strategic Ventures;

failure to accurately predict customer demand, or generate forecasted revenue or profitability;

uncertainty of accurately forecasting financial performance, including the impact of unforeseen changes in the business environment of Strategic Ventures, including, for example, the continuity of government funding for certain in-home care programs;

For example, we recorded a pre-tax, non-cash goodwill impairment charge of $475 million related to our Best Buy Health reporting unit, as described further in the Notes to Consolidated Financial Statements included in Item 8, *Financial Statements and Supplementary Data* and Item 7, *Management’s Discussion and Analysis of Financial Condition and Results of Operations,* in fiscal 2025.

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Any of the following factors could impact our long-term real estate strategy:

geopolitical affairs, including tariffs;

natural disasters and climate events; and

We are subject to risks related to the products we sell, including those products sold on our Marketplace platforms and products under our exclusive brand labels (Best Buy Essentials, Dynex, Insignia, Modal, Platinum, Rocketfish, Yardbird and Lively brands) that could affect our operating results.

We have greater exposure to product-related risks in our exclusive brand category, including:

disruptions in manufacturing or logistics due to inconsistent and unanticipated order patterns;

As a result, consumers may be affected in many ways, including, for example:

We may be unable to increase our prices sufficiently to offset these pressures.

Geopolitical issues around the world and how our markets are positioned can also impact macroeconomic conditions and could have a material adverse impact on our financial results.

These issues include, but are not limited to, the following:

Russia is a significant global producer of both fuel and raw materials used in certain products we sell, including nickel, aluminum and copper.

Disruptions in the markets for those inputs, or other inputs produced by Russia, whether due to sanctions, market pressure to avoid purchasing inputs from Russia or otherwise, could increase overall material costs for many of the products we sell.

We cannot predict the extent or duration of sanctions in response to the conflict in Ukraine, nor can we predict the effects of legislative or other governmental actions or regulatory scrutiny of Russia, its allies or other countries with which Russia has significant trade or financial ties, including China.

The Israel-Hamas War has heightened geopolitical tensions in the Middle East region.

inability to secure adequate access to brands or products for which consumer demand exceeds supply;

We are introducing new products and services, particularly in the health sector, into new market areas.

As these are new technologies for new markets, the first product and service iterations may require further invention and refinement.

Our customers may not like our new value propositions.

This expanded risk increases the complexity of our business and places significant responsibility on our management, employees, operations, systems, technical expertise, financial resources and internal financial and regulatory control and reporting functions.

Our emerging initiatives may subject us to significant laws or regulations.

For example:

We navigate a regulated medical device environment, including oversight by various government and regulatory agencies including, but not limited to, the U.S. Food and Drug Administration (“FDA”).

We participate in government healthcare programs including, but not limited to, Medicaid as a provider of Personal Emergency Response System (“PERS”) devices and services.

Sales of Lively mobile phones and service plans subjects us to regulation as a telecommunications provider, including Federal Communications Commission (“FCC”) oversight.

The collection, storage, use and disclosure of personal information, subjects us to privacy and security requirements.

Notably, portions of the health business are subject to the Health Insurance Portability and Accountability Act (“HIPAA”) and certain of Current Health’s international operations are subject to the UK’s General Data Protection Regulation (“GDPR,” as retained in UK law).

State data privacy laws are also rapidly changing, such as Washington’s new My Health, My Data Act with a private right of action, raising new considerations and challenges.

Designing, marketing and executing these services is subject to incremental risks.

increased labor expense to fulfill our customer promises;

the engagement of third parties to assist with aspects of construction and installation and the potential responsibility for their actions;

The potential adverse impact of these factors can be amplified by price transparency  which can limit our flexibility to modify selling prices  and a highly competitive retail environment.

Generally, our ability to negotiate favorable terms with our vendors is more difficult with vendors when our purchases represent a smaller proportion of their total revenues and/or when there is less competition for those products.

We may decide to enter into new joint ventures, partnerships, alliances or acquisitions with third parties (collectively, “new ventures”).

different and incremental business and other risks of the new venture not identified in our diligence assessments;

failure to attract, motivate and retain key employees of the new venture;

uncertainty of forecasting financial performance;

unforeseen changes in the business environment of the new venture;

disputes or strategic differences with key employees or other third-party participants in the new venture; and

Most of our properties are leased under multi-year contracts.

As such, it is essential that we effectively evaluate a range of factors that may influence the success of our long-term real estate strategy.

Such factors include, for example:

changing patterns of customer consumption and behavior, particularly in light of an evolving omnichannel environment;

the interior layout, format and size of our stores;

the occupancy cost of our stores relative to market rents.

If we fail to effectively evaluate these factors or negotiate appropriate terms, or if unforeseen changes arise, the consequences could include, for example:

closing stores and abandoning the related assets, while retaining the financial commitments of the leases;

[Refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the fiscal year ended [removed: January 28, 2023,] [added: February 3, 2024,] for discussion of the results of operations for the year ended [removed: January 28, 2023,] [added: February 3, 2024,] compared to the year ended January [removed: 29, 2022,] [added: 28, 2023,] which is incorporated by reference [removed: herein.](https://www.sec.gov/ix?doc=/Archives/edgar/data/764478/000076447823000006/bby-20230128x10k.htm)][added: herein.](http://www.sec.gov/ix?doc=/Archives/edgar/data/764478/000076447824000010/bby-20240203x10k.htm)]

We accomplish this by leveraging our combination of [removed: technology] [added: tech expertise] and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.

The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy [added: Essentials, Best Buy] Health, [removed: CST,] Current Health, Geek Squad, [added: Imagine That, Insignia,] Lively, [removed: Magnolia,] [added: My Best Buy, My Best Buy Memberships,] Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com.

[removed: The] [added: Our] International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy [removed: Mobile and] [added: Express, Best Buy Mobile,] Geek Squad and [added: TechLiquidators and] the domain [removed: name bestbuy.ca.][added: names bestbuy.ca and techliquidators.ca.]

Fiscal [removed: 2024,] [added: 2025,] fiscal [removed: 2023] [added: 2024] and fiscal [removed: 2022] [added: 2023] ended [added: on] February [added: 1, 2025, February] 3, 2024, [added: and] January 28, 2023, [removed: and January 29, 2022,] respectively.

Unless otherwise noted, references to years [removed: in] [added: within] the MD&A section of this report relate to fiscal years, [removed: and] not calendar years.

Fiscal [removed: 2023] [added: 2025] and fiscal [removed: 2022] [added: 2023] each included 52 weeks.

Revenue from online sales is included in comparable sales and represents sales initiated on a website or app, regardless of whether customers choose to [added: have product delivered, or] pick up product in store, [removed: curbside,] [added: curbside or] at an alternative pick-up [removed: location or take delivery direct to their homes.][added: location.]

Comparable sales excludes the impact of [added: certain periodic warranty-related] profit-share revenue, the effect of fluctuations in foreign currency exchange rates (applicable to our International segment only) and the impact of the 53rd week [added: (applicable] in [added: 53-week] fiscal [removed: 2024.][added: years only).]

This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), as well as certain [removed: adjusted or] non-GAAP financial measures, such as [removed: non-GAAP] [added: consolidated adjusted] operating income, [removed: non-GAAP] [added: consolidated adjusted operating income rate, consolidated adjusted] effective tax rate and [removed: non-GAAP] [added: consolidated adjusted] diluted earnings per share (“EPS”).

Generally, our non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and [added: acquired] intangible asset impairments, price-fixing settlements, gains and losses on sales of subsidiaries and certain investments, [added: amortization of definite-lived] intangible [removed: asset amortization,] [added: assets associated with acquisitions,] certain acquisition-related costs and the tax effect of all such items.

We strongly encourage investors and shareholders to review our financial statements and [removed: publicly-filed] [added: publicly filed] reports in their entirety and not to rely on any single financial measure.

Refer to the Non-GAAP Financial Measures section below for detailed reconciliations of items impacting [removed: non-GAAP] [added: consolidated adjusted] operating income, [removed: non-GAAP] [added: consolidated adjusted] effective tax rate and [removed: non-GAAP] [added: consolidated adjusted] diluted EPS in the presented periods.

Our strategy [removed: is] [added: was] to focus on sharpening our customer experiences and industry positioning while [removed: maintaining, if not expanding,] [added: optimizing] our [removed: profitability.][added: operating income rate.]

| | [removed: 2024] [added: 2025] | | | | [removed: 2023] [added: 2024] | | | | [removed: 2022] [added: 2023] | | |

| Revenue | $ | [removed: 43,452] [added: 41,528] | | | $ | [removed: 46,298] [added: 43,452] | | | $ | [removed: 51,761] [added: 46,298] | |

| Revenue % change | | [removed: (6.1)] [added: (4.4)] | % | | | [removed: (10.6)] [added: (6.1)] | % | | | [removed: 9.5] [added: (10.6)] | % |

| Comparable sales % change | | [removed: (6.8)] [added: (2.3)] | % | | | [removed: (9.9)] [added: (6.8)] | % | | | [removed: 10.4] [added: (9.9)] | % |

| Gross profit | $ | [removed: 9,603] [added: 9,385] | | | $ | [removed: 9,912] [added: 9,603] | | | $ | [removed: 11,640] [added: 9,912] | |

| Gross profit as a % of revenue(1) | | [removed: 22.1] [added: 22.6] | % | | | [removed: 21.4] [added: 22.1] | % | | | [removed: 22.5] [added: 21.4] | % |

| SG&A | $ | [removed: 7,876] [added: 7,651] | | | $ | [removed: 7,970] [added: 7,876] | | | $ | [removed: 8,635] [added: 7,970] | |

| SG&A as a % of revenue(1) | | [removed: 18.1] [added: 18.4] | % | | | [removed: 17.2] [added: 18.1] | % | | | [removed: 16.7] [added: 17.2] | % |

| Restructuring charges | $ | [removed: 153] [added: (3)] | | | $ | [removed: 147] [added: 153] | | | $ | [removed: (34)] [added: 147] | |

| Operating income | $ | [removed: 1,574] [added: 1,262] | | | $ | [removed: 1,795] [added: 1,574] | | | $ | [removed: 3,039] [added: 1,795] | |

| Operating income as a % of revenue | | [removed: 3.6] [added: 3.0] | % | | | [removed: 3.9] [added: 3.6] | % | | | [removed: 5.9] [added: 3.9] | % |

| Net earnings | $ | [removed: 1,241] [added: 927] | | | $ | [removed: 1,419] [added: 1,241] | | | $ | [removed: 2,454] [added: 1,419] | |

In fiscal [removed: 2024,] [added: 2025,] we generated [removed: $43.5] [added: $41.5] billion in revenue, [removed: including] [added: compared to $43.5 billion in fiscal 2024 that included] approximately $735 million in revenue from the 53rd week.

Revenue, gross profit rate, SG&A and operating income rate changes in fiscal [removed: 2024] [added: 2025] were primarily driven by our Domestic segment.

Our effective tax rate increased [added: to 28.7%] in fiscal [added: 2025 compared to 23.5% in fiscal] 2024, primarily due to [removed: reduced tax benefits from] the [removed: resolution] [added: impacts] of [added: certain expenses that are not] tax [removed: matters] [added: deductible] and [removed: stock-based compensation,] [added: lower pre-tax earnings,] partially offset by [removed: the impact of lower pre-tax earnings.][added: increased tax benefits from green energy incentives.]

| Revenue | $ | [removed: 40,097] [added: 38,238] | | | $ | [removed: 42,794] [added: 40,097] | | | $ | [removed: 47,830] [added: 42,794] | |

| Revenue % change | | [removed: (6.3)] [added: (4.6)] | % | | | [removed: (10.5)] [added: (6.3)] | % | | | [removed: 10.5] [added: (10.5)] | % |

| Comparable sales % change(1) | | [removed: (7.1)] [added: (2.5)] | % | | | [removed: (10.3)] [added: (7.1)] | % | | | [removed: 11.0] [added: (10.3)] | % |

| Gross profit | $ | [removed: 8,850] [added: 8,647] | | | $ | [removed: 9,106] [added: 8,850] | | | $ | [removed: 10,702] [added: 9,106] | |

| Gross profit as a % of revenue | | [removed: 22.1] [added: 22.6] | % | | | [removed: 21.3] [added: 22.1] | % | | | [removed: 22.4] [added: 21.3] | % |

| Restructuring [removed: charges] [added: charges(2)] | [removed: $] | [removed: 147] [added: (3)] | | | [removed: $] | [removed: 140] [added: 153] | | | [removed: $] | [removed: (39)] [added: 147] | |

| Operating income | $ | [removed: 1,467] [added: 1,262] | | | $ | [removed: 1,634] [added: 1,574] | | | $ | [removed: 2,795] [added: 1,795] | |

| Total online revenue | $ | [removed: 13,102] [added: 12,994] | | | $ | [removed: 14,212] [added: 13,102] | | | $ | [removed: 16,430] [added: 14,212] | |

| Online revenue as a % of total segment revenue | | [removed: 32.7] [added: 34.0] | % | | | [removed: 33.2] [added: 32.7] | % | | | [removed: 34.4] [added: 33.2] | % |

| Comparable online sales % change(1) | | [removed: (7.8)] [added: (0.8)] | % | | | [removed: (13.5)] [added: (7.8)] | % | | | [removed: (12.0)] [added: (13.5)] | % |

[added: - Computing and Mobile Phones:] The [removed: decrease in Domestic revenue in fiscal 2024] [added: 3.4% comparable sales growth] was [removed: primarily] driven [added: primarily] by [removed: comparable sales declines in home theater, large appliances,] computing and [removed: mobile phones, partially offset by comparable sales growth in gaming hardware.][added: tablets.]

Comparable sales is based on our fiscal calendar and is not adjusted to align calendar weeks.

Consistent with our comparable sales policy, revenue from Best Buy Express locations rebranded as a result of our previously announced collaboration with Bell Canada is excluded from our comparable sales calculation until locations have been operating for at least 14 full months.

Beginning in the fourth quarter of fiscal 2025, we renamed our non-GAAP financial measures to adjusted financial measures; for example, consolidated non-GAAP operating income has been renamed to consolidated adjusted operating income.

The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged.

Our strategy for fiscal 2026 involves three key priorities:

*Omni-channel enhancements*

Starting with our digital experiences, we intend to improve our search and discover capability to make it easier for our customers to find what they want and need.

We will leverage artificial intelligence (“AI”) to launch an innovative new search experience across our websites and apps.

We will also leverage AI to enhance personalization, which we believe will drive both customer engagement and sales conversion.

In our physical stores, we expect to prioritize merchandising and store health and appearance updates over large-scale remodels, building on the insights we have gained from testing and changes implemented within our stores in recent years.

From a store labor perspective, we will focus on enhancements and optimization, building on the significant operating model changes we have made in recent years that were designed to provide the experience our customers expect in the most efficient way possible.

*Investment in new growth initiatives*

We are targeting a mid-fiscal 2026 launch for our new Best Buy Marketplace (“Marketplace”) within our Domestic segment, which we believe will complement our existing product assortment with access to a broader range of products offered by Marketplace sellers.

We believe this will unlock potential new commission and advertising revenue, without requiring our investment in inventory.

We have recently elevated our focus on Best Buy Ads, our retail media network, and we see fiscal 2026 as a pivotal year.

In recent years, Best Buy Ads has primarily served our merchandise vendors.

In fiscal 2026, we will continue this evolution and also expect Best Buy Ads to expand into other areas of opportunity.

In order to support this growth, we plan to invest in technology capabilities, our Best Buy Ads team and other new third-party partnerships.

*Operational efficiency*

Our third strategic priority for fiscal 2026 is to continue our longstanding commitment to operational efficiency by identifying cost reductions and other savings to help fund investment capacity for new and existing initiatives and offset financial pressures facing our business.

‎

Tariffs

We enter fiscal 2026 facing significant uncertainty regarding the scope, timing and magnitude of tariffs we may experience for the products we sell and the consequent financial impact on our business.

In conjunction with our vendors, we will seek to mitigate the impact of tariffs on our business and our customers.

For more information regarding the potential impacts of tariffs on our business, refer to Item 1A, *Risk Factors*, of this Annual Report on Form 10-K.

In fiscal 2025, we continued to manage our profitability through strong execution despite revenue declines.

As we entered the year, we were operating in an uneven environment and expected there would be industry pressure.

| Goodwill impairment | $ | 475 | | | $ | \- | | | $ | \- | |

Our comparable sales declined 2.3% in fiscal 2025, as we continued to operate in a challenged consumer electronics industry and experienced softer consumer demand.

While our comparable sales declined in fiscal 2025 in categories such as appliances, home theater and gaming, we grew comparable sales in our computing, tablet and services categories.

The goodwill impairment in fiscal 2025 was related to our Best Buy Health reporting unit.

The impairment primarily arose from downward revisions of our revenue growth rates and margin rates compared to projections used in prior years.

Diluted EPS decreased in fiscal 2025, primarily due to lower operating income.

Store Summary

Stores open by segment were as follows:

| Total stores | | 1,117 | | | | 1,125 | | | | 1,138 | |

In fiscal 2024, we announced our collaboration with Bell Canada to rebrand 167 of its stores to Best Buy Express.

These stores, previously part of The Source, a wholly owned subsidiary of Bell Canada, are leased by Bell Canada and therefore excluded from our store count.

Under the arrangement, we provide the curated consumer electronics assortment and Geek Squad services, as well as supply chain, marketing and e-commerce support.

Bell Canada is the exclusive telecommunications services provider and is also responsible for the store operations.

During fiscal 2024, our teams once again delivered strong execution and showcased their ability to navigate through what continues to be a challenging environment for our industry, while keeping our customers and their experiences as our top priority.

We continue to balance the need to adjust in response to current industry sales trends with the need to invest in our business so that we can capitalize on opportunities as our industry moves through this downturn and returns to expected growth.

In fiscal 2024, digital sales comprised 33% of our Domestic revenue compared to 19% in fiscal 2020.

During these same time periods, the percentage of online sales picked up in our stores by our customers was consistent at just over 40%.

Therefore, we are continuing to adapt our omnichannel capabilities to ensure we maintain a leading position in an increasingly digital age and evolving retail landscape.

We believe our portfolio of stores are crucial assets that provide customers with differentiated experiences, services and convenient multichannel fulfillment.

At the same time, our stores need to be cost and capital efficient to operate while remaining a great place to work.

During fiscal 2024, we closed 24 large format stores and implemented 8 large format Experience store remodels.

As we look to fiscal 2025, we plan to invest back into our store experience.

Customer shopping behavior has evolved in the last four years, and in the near-term we are particularly focused on ensuring we provide the experience that customers expect to have when they take the time to come into our stores.

As a result, our capital investments for fiscal 2025 are concentrated more on existing store updates and refreshes and less on major remodels or store openings.

We continue to advance our omni-channel operating model to align with the ongoing evolution of our industry and marketplace trends with two overarching goals in mind – efficiently allocating our labor cost, considering the channel shift from our physical stores to online, and providing our employees flexibility, predictability and opportunities to gain more skills.

We are focused on balancing the amount of labor hours necessary to deliver the best experience possible for our customers and other stakeholders.

During fiscal 2024, we continued to grow our membership base and ended the year with a total of approximately seven million paid members.

Our paid members consistently showed higher levels of interaction, with comparatively higher levels of spend at Best Buy and a shift of spend away from competitors.

Last June, we successfully launched significant changes to our membership program that allow customers more freedom to choose a membership that fits their technology needs, budget and shopping preferences.

In addition, we expect the changes to provide more flexibility to evolve our programs while resulting in a lower cost to serve than our previous paid membership program, which we have already seen results in margin favorability.

Although there continue to be macro pressures impacting retail overall and consumer electronics more specifically, we expect fiscal 2025 to be a year of increasing industry stabilization as the pace of innovation increases and consumers begin to upgrade and replace technology products bought earlier in the pandemic.

We remain excited about our industry and our future.

There are more technology products than ever in people’s homes, technology is increasingly a necessity in our lives, and we believe we are uniquely there for our customers as they navigate this vibrant, ever-changing and innovative space.

| | | | | | | | | | | | |

| Diluted earnings per share | $ | 5.68 | | | $ | 6.29 | | | $ | 9.84 | |

Our comparable sales declined 6.8% in fiscal 2024, as we continued to operate in a consumer electronics industry that is challenged by various macroeconomic pressures, including high inflation, increased spending outside the home in areas such as travel and entertainment, the pull-forward of demand in prior years and lower levels of product innovation.

Income tax expense increased in fiscal 2024, primarily due to reduced benefits from the resolution of tax matters and stock-based compensation, partially offset by the impact of decreased pre-tax earnings.

| SG&A | $ | 7,236 | | | $ | 7,332 | | | $ | 7,946 | |

| SG&A as a % of revenue | | 18.0 | % | | | 17.1 | % | | | 16.6 | % |

| Operating income as a % of revenue | | 3.7 | % | | | 3.8 | % | | | 5.8 | % |

Domestic revenue was $40.1 billion in fiscal 2024, including approximately $675 million of revenue from the 53rd week.

These decreases in revenue were primarily due to the factors described within the *Consolidated Results* section, above.

Domestic segment stores open at the end of each of the last three fiscal years were as follows:

| | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | Total Stores‎at End of‎Fiscal Year | | | Stores‎Opened | | | Stores‎Closed | | | Total Stores‎at End of‎Fiscal Year | | | Stores‎Opened | | | Stores‎Closed | | | Total Stores‎at End of‎Fiscal Year | |

The restructuring initiative is intended to accomplish the following: (1) align field labor resources with where customers want to shop to optimize the customer experience; (2) redirect corporate resources for better alignment with our strategy; and (3) right-size resources to better align with our revenue outlook in fiscal 2025.

| Operating income | $ | 107 | | | $ | 161 | | | $ | 244 | |

| Operating income as a % of revenue | | 3.2 | % | | | 4.6 | % | | | 6.2 | % |

International revenue was $3.4 billion in fiscal 2024, including approximately $60 million of revenue from the 53rd week.

The decrease in International revenue in fiscal 2024 was primarily driven by comparable sales declines across most of our product categories and the negative impact from unfavorable foreign currency exchange rates.

International segment stores open at the end of each of the last three fiscal years were as follows:

| | | | | | | | | | | | | | | | | | | | | |

Refer to Note [removed: 6,] [added: 5,] *Derivative Instruments*, and Note [removed: 8,] [added: 7,] *Debt*, of the Notes to Consolidated Financial Statements, included in Item 8, *Financial* *Statements and Supplementary Data*, of this Annual Report on Form 10-K for further information regarding our interest rate swaps.

As of February [removed: 3, 2024,] [added: 1, 2025,] we had [removed: $1.8] [added: $1.9] billion of cash, cash equivalents and restricted cash and $0.5 billion of debt that has been swapped to floating rate, and therefore the net asset balance exposed to interest rate changes was [removed: $1.3] [added: $1.4] billion.

As of February [removed: 3, 2024,] [added: 1, 2025,] a 50-basis point increase in short-term interest rates would have led to an estimated [removed: $6] [added: $7] million increase in [added: net] interest income, and conversely a 50-basis point decrease in short-term interest rates would have led to an estimated [removed: $6] [added: $7] million decrease in [added: net] interest income.

Refer to Note [removed: 6,] [added: 1, *Summary of Significant Accounting Policies*, and Note 5,] *Derivative Instruments*, of the Notes to Consolidated Financial Statements, included in Item 8, *Financial Statements and Supplementary Data*, of this Annual Report on Form 10-K for further information regarding these instruments.

During fiscal [removed: 2024,] [added: 2025,] foreign currency exchange rate fluctuations were primarily driven by the strength of the U.S. dollar [removed: compared to] [added: against] the Canadian dollar compared to the prior-year [removed: period, which had a negative overall impact on our revenue as this foreign currency revenue translated into less U.S. dollars.][added: period.]

We estimate that [added: the] foreign currency exchange rate fluctuations had an unfavorable impact on our revenue of approximately [removed: $90] [added: $85] million.

The [added: estimated] impact of foreign exchange rate fluctuations on our net earnings in fiscal [removed: 2024] [added: 2025] was not significant.

Unless the context otherwise requires, the terms “we,” [removed: “us” and] [added: “us,”] “our” [added: and the “company”] in this Annual Report on Form 10-K refer to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.

The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy [added: Essentials, Best Buy] Health, [removed: CST,] Current Health, Geek Squad, [added: Imagine That, Insignia,] Lively, [removed: Magnolia,] [added: My Best Buy, My Best Buy Memberships,] Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com.

Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy [removed: Mobile and] [added: Express, Best Buy Mobile,] Geek Squad and [added: TechLiquidators and] the domain [removed: name bestbuy.ca.][added: names bestbuy.ca and techliquidators.ca.]

In addition, support capabilities (for example, human resources, finance, information technology and real estate management) operate [added: primarily] from our corporate headquarters.

We also have field operations that support retail, services and in-home teams [added: primarily] from our corporate headquarters and regional locations.

Customers within our Domestic [removed: and International segments] [added: segment] who purchase product online have the choice to [added: have product delivered, or] pick up product [removed: at] [added: from] a Best Buy store (including curbside pick-up for many products at most [removed: Domestic] stores) or [removed: at] an alternative pick-up [removed: location or take delivery direct to their residence or place of business.][added: location.]

In fiscal [removed: 2024,] [added: 2025,] our 20 largest suppliers accounted for approximately 80% of the merchandise we purchased, with five suppliers – Apple, Samsung, HP, Sony and LG – representing approximately 55% of total merchandise purchased.

Key elements to our inventory management process include the following: continuous monitoring of consumer [removed: demand,] [added: demand and product life cycles,] continuous monitoring and adjustment of inventory receipt levels and pricing, agreements with vendors relating to reimbursement for the cost of markdowns or sales incentives, and agreements with vendors relating to return privileges for certain products.

We had [removed: 1,125] [added: 1,117] stores at the end of fiscal [removed: 2024] [added: 2025] throughout our Domestic and International segments.

We own or have the right to use valuable intellectual property such as trademarks, service marks and trade names, including, but not limited to, *Best Buy, Best Buy Ads, Best Buy Essentials, Best Buy [added: Express, Best Buy] Health, Best Buy [removed: Mobile, CST,] [added: Marketplace,] Current Health, [removed: Dynex,] Geek Squad, [added: Imagine That,] Insignia, Jitterbug, Lively, Magnolia, [removed: Modal,] My Best Buy, [added: My Best Buy Memberships,] Pacific Kitchen and Home, Pacific Sales, [removed: Platinum,] Rocketfish*, *TechLiquidators*, *Yardbird* and our *Yellow Tag* logo.

In addition, our revolving credit [removed: facilities are] [added: facility is] available for additional working capital needs, for general corporate purposes, investments and growth opportunities.

We believe our dedicated and knowledgeable people; our integrated online, retail and in-home assets; our broad and curated product assortment; our strong vendor partnerships; our service and support offerings designed to solve [removed: real] customer needs; our unique ability to showcase technology in distinct store formats; and our supply chain are important ways in which we maintain our competitive advantage.

As we pursue our purpose to enrich lives through technology, we are committed to [removed: having a positive impact on] [added: creating shared long-term value and positively impacting] the world, the environment and the communities in which we operate through interactions with [removed: all of] our stakeholders, including our customers, employees, vendor partners, community partners and shareholders.

The Nominating, Corporate Governance and Public Policy Committee of our Board of Directors (“Board”) advises and oversees management regarding the effectiveness and risks of our [removed: environmental, social and governance] [added: CR&S] strategy, programs and initiatives, including environmental goals and progress, [removed: social] [added: corporate] responsibility programs, initiatives and public policy positions and advocacy.

We [removed: are committed] [added: aspire] to [removed: propelling] [added: drive forward] the circular [removed: economy forward,] [added: economy,] a system that aims to reduce waste and preserve resources.

We focus on our highest-impact areas, including [removed: in] our operations, [removed: through] the energy we procure and [removed: through] the products we sell.

We believe the following focus areas [removed: will] help to reduce the use of natural resources and our impact on the environment while improving our efficiency and profitability:

To reduce waste and maximize resource efficiency, we continue our efforts to build a more sustainable supply chain by focusing on certifying our [removed: warehousing operations] [added: supply chain locations] as TRUE zero waste.

Our focus on sustainable products [removed: is centered] [added: centers] on helping our customers reduce their impact on the environment through the products we sell.

We do this by providing a variety of energy-efficient products [removed: to] [added: for] our customers.

[removed: *Social*][added: *Social Impact*]

We are committed to respecting [removed: and advancing] human rights through our alignment with the United Nations Guiding Principles on Business and Human Rights.

Further, across all the products and services we procure, we seek to [added: mitigate risk and] enhance our partnership with suppliers and create value for all stakeholders through our Responsible Sourcing Program.

We are active members of the Responsible Business Alliance, [removed: which allows us to partner with] [added: as are] many of the [added: major] brands we sell, [removed: including Apple, Intel, Microsoft] [added: which allows us to partner across initiatives] and [removed: Samsung.][added: increase our impact.]

Collectively, we embrace a common Supplier Code of Conduct and audit methodology that [removed: seeks to improve] [added: creates business value by improving] working [added: conditions] and environmental [removed: conditions in] [added: practices throughout] the supply chain.

[removed: Employee] [added: We believe our employee] volunteer [removed: programs] [added: programs,] like Geek Squad [removed: Academy] [added: Academy, help to] spark excitement and interest in technology for young [removed: learners,] [added: learners] while engaging our employees’ unique technical expertise.

As of February [removed: 3, 2024,] [added: 1, 2025,] the Best Buy Foundation™ supported a network of [removed: 59] [added: 68] Best Buy Teen Tech Center® locations across the U.S. and [removed: Canada, working toward a goal of supporting 100 locations.][added: Canada.]

At the end of fiscal [removed: 2024,] [added: 2025,] we employed [removed: more than] [added: approximately] 85,000 employees in the U.S. and Canada.

[removed: *Inclusion, Diversity] [added: *Inclusion] and [removed: Equity*][added: Belonging*]

[removed: The] [added: Our Executive Leadership Team and] Compensation and Human Resources Committee of our Board supports the development of [removed: an inclusive and diverse] [added: a] culture [added: of belonging and engagement] through oversight of our human resources policies and [removed: program.][added: programs.]

[removed: This] [added: Prioritizing foundational and leadership skill development] helps to [removed: create] [added: meet employees where they are at, which creates] a more adaptable and resilient workforce and enhances our competitive advantage.

This included [added: new learning campaigns, leadership programs and expanded] side-by-side [removed: trainings, enabling employees] [added: trainings] to [removed: learn and grow] [added: support employee growth] alongside their peers and leaders in condensed training formats.

Examples of enhancements [added: in fiscal 2025] include:

Our benefits aim to support employees’ overall [removed: well-being.][added: well-being: physical, mental, financial and work-life.]

[removed: In] [added: Additionally, in] fiscal [removed: 2024,] [added: 2025,] we continued our focus on:

[removed: Caregiver support benefits through] [added: oAccess to] Joshin, a support system for employees and their loved ones with a focus on disabilities and neurodivergence;

[removed: Caregiver support benefits that enable employees to receive personalized] [added: oPersonalized] help in a time of great need through Wellthy, a program that helps with emergency housing, healthcare, substance abuse, complex eldercare issues and other moments of crisis;

[removed: Pay] [added: oPay] continuation (paid leave) and caregiver pay so employees can care for themselves and their loved ones;

[removed: Emergency] [added: Up to $2,500 in financial] assistance [added: to employees experiencing personal hardship] through the HOPE Fund – Helping Our People in Emergencies – in [removed: equal] partnership with the Richard M.

Mental [removed: health,] [added: health support,] including our commitment to raise awareness [removed: about mental health,] [added: by] equipping employees with training to notice issues in themselves or others, and then find help; and

Distribution is similar for our International segment.

Corporate Responsibility & Sustainability (“CR&S”)

These efforts contribute to mitigating climate risks, reducing potential risks to our business and generating long-term cost savings.

We aim to reduce our carbon emissions by minimizing energy usage, advocating for a cleaner grid and sourcing renewable energy.

In fiscal 2025, we continued to evolve our industry-leading e-waste recycling program and found additional ways to incentivize recycling.

We are committed to helping teens build brighter futures and increasing access to technology for the tech-reliant careers of the future.

We believe in an inclusive work environment with a culture of belonging where everyone feels valued, can thrive and has equal opportunities at all levels in the organization.

At the core of this environment are our company values, which were founded decades ago and focus, in part, on what it means to unleash the power of our people, as individuals, so everyone can learn, grow and be the best version of themselves.

We believe that creating this environment is the right thing to do and has been key to our long-term business success.

*‎*

We continue to invest in our employees and build a culture focused on developing our talent.

Additionally, we believe by investing in employee training and development we can create a better employee environment and increase productivity, retention and innovation that ultimately improves our overall company performance and brings value to stakeholders.

With the continued goal of creating learning opportunities that are tailored to the unique work of each role and a focus on solving the most important problems in our business, we expanded our variety of training experiences in fiscal 2025.

We evolved our leadership development offerings to grow and transform Best Buy for its future.

These offerings included unique programs such as an enterprise-wide manager development program, a skill development program for our senior store leaders and several emerging talent programs including an officer readiness program.

We expanded our learning campaigns, reaching thousands of employees for new products to include a closer partnership with our vendors, more exposure for our employees and in-depth training in artificial intelligence to help customers with the products they use.

We enhanced our portfolio of risk, compliance and safety microlearning courses to enable employees to continuously develop safe, secure and ethical behaviors to protect the company.

We believe our ability to deliver on our purpose of enriching our customers’ lives depends on ensuring our employees are living happy and healthy lives — both while at work and outside of work.

In fiscal 2025, we introduced the following benefits to our employees:

A well-being sabbatical for employees with five or more years of service that provides them an opportunity to take four weeks off (once every three years) to focus on their well-being.

Additional paid time off each year in recognition of tenure for full-time employees with 20 or more years of service, plus additional tiers for part-time employees at three and six years.

Five floating holidays and two fixed company holidays (Thanksgiving and Christmas Day) in place of seven fixed holidays for U.S. employees, to give flexibility for employees to celebrate what is meaningful to them.

Caregiver support, including:

oParental leave for U.S. employees that provides eligible birth parents 100% pay for 10 weeks and eligible non-birth parents 100% pay for four weeks;

Schulze Family Foundation;

Refer to Item 7, *Management's Discussion and Analysis of Financial Condition and Results of Operations,* for tables reconciling our Domestic and International segment stores open at the end of each of the last three fiscal years.

Environmental and Social

In our ongoing efforts to reduce carbon emissions in our operations, we support energy efficiency programs, including investments in energy efficiency improvements, deploying small-scale onsite and utility-scale renewable energy systems and neutralizing residual emissions.

*Community Impact*

Best Buy is committed to helping prepare teens from disinvested communities for the tech-reliant careers of the future.

We are proud and encouraged by what we have accomplished collectively to expand inclusion, diversity and equity at Best Buy over the past few years.

Now we are evolving our strategic focus to advance four specific outcomes:

Employee Engagement: We want Best Buy employees to feel connected to the company’s values, vision and purpose, and have opportunities to thrive.

Retention: Best Buy seeks to establish and uphold a best-in-class retention approach across all demographics.

Representation: We aim to provide Best Buy employees from diverse backgrounds with equal opportunities at all levels in the organization.

Culture of Belonging: Best Buy endeavors to foster an environment where employees feel welcomed and can build strong relationships through demonstrating our inclusive behaviors: vulnerability, empathy, courage and grace.

We continue to invest in our employees and their skill development to enable customized learning experiences.

With the continued goal of personalizing learning opportunities, we transitioned to offering new types of training experiences in fiscal 2024.

We evolved the onboarding experience, optimizing this for new employees.

We also created new, consistent onboarding experiences in our supply chain, services teams, call centers and project teams.

We built an internal program to apply industry-leading learning methodologies and focused on building enterprise leaders who are more equipped to lead through times of uncertainty and change, while growing and transforming Best Buy for the future.

Parental leave that provides qualifying employees up to 10 weeks at 100% pay;

Dedicated support through Included Health, a benefit that connects members to culturally competent providers who understand the unique needs of their community;

Access to physical and mental health virtual visits;

Schultze Family Foundation, providing employees in hardship situations an opportunity to receive up to $2,500 in financial assistance;

For additional information regarding our legal proceedings, see Note [removed: 13,] [added: 12,] *Contingencies and Commitments*, of the Notes to Consolidated Financial Statements, included in Item 8, *Financial Statements and Supplementary Data*, of this Annual Report on Form 10-K.

For the fiscal year ended February [removed: 3, 2024][added: 1, 2025]

][added: 3](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201x10kg001.jpg)]

| [removed: State] [added: (State] or other jurisdiction of incorporation or [removed: organization] [added: organization)] | | (I.R.S. Employer Identification No.) |

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of [removed: July 28, 2023,] [added: August 2, 2024 (the last business day of the registrant’s most recently completed second fiscal quarter)] was approximately [removed: $14.1] [added: $15.8] billion, computed by reference to the price of [removed: $82.90] [added: $82.36] per share, the price at which the common equity was last sold on [removed: July 28, 2023,] [added: August 2, 2024,] as reported on the New York Stock Exchange-Composite Index.

As of March [removed: 13, 2024,] [added: 17, 2025,] the registrant had [removed: 215,381,395] [added: 211,369,657] shares of its common stock, $0.10 par value per share, issued and outstanding.

Portions of the registrant's Definitive Proxy Statement relating to its [removed: 2024] [added: 2025] Regular Meeting of Shareholders ("Proxy Statement") are incorporated by reference into Part III.

BEST BUY FISCAL [removed: 2024] [added: 2025] FORM 10-K

| | [Information about our Executive Officers](#ExecutiveOfficersoftheRegistrant). | [removed: 21] [added: 20] |

| [PART II](#PartII) | | [removed: 22] [added: 21] |

| [Item 5.](#Item5) | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.](#Item5) | [removed: 22] [added: 21] |

| [Item 6](#Item6). | [\[Reserved\]](#Item6). | [removed: 23] [added: 22] |

| [Item 7A.](#Item7A) | [Quantitative and Qualitative Disclosures About Market Risk.](#Item7A) | [removed: 34] [added: 33] |

| [Item 8.](#Item8) | [Financial Statements and Supplementary Data.](#Item8) | [removed: 35] [added: 34] |

| [Item 9.](#Item9) | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.](#Item9) | [removed: 64] [added: 62] |

| [Item 9A.](#Item9A) | [Controls and Procedures.](#Item9A) | [removed: 64] [added: 62] |

| [Item 9B.](#Item9B) | [Other Information.](#Item9B) | [removed: 64] [added: 63] |

| [Item 9C](#Item9C). | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#Item9C). | [removed: 65] [added: 63] |

| [PART III](#PartIII) | | [removed: 65] [added: 63] |

| [Item 10.](#Item10) | [Directors, Executive Officers and Corporate Governance.](#Item10) | [removed: 65] [added: 63] |

| [Item 11.](#Item11) | [Executive Compensation.](#Item11) | [removed: 65] [added: 63] |

| [Item 12.](#Item12) | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.](#Item12) | [removed: 65] [added: 63] |

| [Item 13.](#Item13) | [Certain Relationships and Related Transactions, and Director Independence.](#Item13) | [removed: 65] [added: 63] |

| [Item 14.](#Item14) | [Principal Accountant Fees and Services.](#Item14) | [removed: 65] [added: 64] |

| [PART IV](#PartIV) | | [removed: 65] [added: 64] |

| [Item 15.](#Item15) | [Exhibit and Financial Statement Schedules.](#Item15) | [removed: 65] [added: 64] |

| [Item 16.](#Item16) | [Form 10-K Summary.](#Item16) | [removed: 67] [added: 66] |

| | [Signatures](#Signatures). | [removed: 68] [added: 67] |

We also process substantial volumes of confidential business information and sensitive consumer and employee personal information, which if impacted by cyber [removed: threats] [added: threats,] could result in financial and reputational harms and regulatory sanction.

Certain specific, defined components of our technology environment are assessed by third-party auditors with a view to [removed: alignment] [added: align] with industry standards such as, for example, the Payment Card Industry Data Security Standards.

Our program is informed by industry standards such as, for example, the National Institute of Standards and Technology’s [removed: Framework for Improving Critical Infrastructure] Cybersecurity [added: Framework] (“NIST CSF”), but this does not imply that we meet all technical standards, specifications or requirements under the NIST [added: CSF, NIST] CSF [added: 2.0] or other sources.

For additional information on [removed: this risk,] [added: such risks,] see Item 1A, *Risk Factors,* of this Annual Report on Form 10-K.

Executive management including our Chief Information Security Officer (“CISO”), who reports to our General Counsel & Chief Risk Officer, [removed: updates] [added: update] the Audit Committee on our cybersecurity posture no less frequently than quarterly and periodically update the full Board.

Our current CISO has been with the Company for more than [removed: eight] [added: nine] years—serving as our CISO for nearly [removed: seven] [added: eight] years—and has extensive cybersecurity experience through leadership and consulting roles.

His current leadership team [removed: comprising seven individuals] has over [removed: 130] [added: 100] years of combined cybersecurity experience.

[removed: These and other EIP team members work closely with stakeholders across the Company to implement the program’s policies, standards and processes and] [added: They also] help ensure awareness that securing customer information and honoring our privacy promises are core employee obligations, as highlighted in our Code of Ethics and reinforced through our Valuable Information Protection training program.

These and other EIP team members work closely with stakeholders across the company to implement the program’s policies, standards and processes.

The location and total square footage of our Domestic segment stores at the end of fiscal [removed: 2024] [added: 2025] were as follows:

| Arkansas | | 7 | | | New Jersey | | [removed: 26] [added: 25] | |

| Colorado | | [removed: 22] [added: 21] | | | New York | | [removed: 45] [added: 44] | |

| District of Columbia | | 1 | | | Ohio | | [removed: 34] [added: 33] | |

| Illinois | | [removed: 41] [added: 40] | | | Rhode Island | | 1 | |

| Kentucky | | 9 | | | Texas | | [removed: 101] [added: 100] | |

| Louisiana | | 15 | | | Utah | | [removed: 11] [added: 10] | |

| Maryland | | 19 | | | Virginia | | [removed: 30] [added: 29] | |

| Minnesota | | [removed: 19] [added: 18] | | | Wisconsin | | 22 | |

| Missouri | | 14 | | | Total Domestic store count | | [removed: 965] [added: 957] | |

| Montana | | [removed: 3] [added: 4] | | | Square footage (in thousands) | | [removed: 36,771] [added: 36,539] | |

(1)Includes 20 Pacific Sales stores, [removed: 22] [added: 25] Best Buy Outlet Centers and [removed: 22] [added: 21] Yardbird stand-alone stores.

The location and total square footage of our International segment stores at the end of fiscal [removed: 2024] [added: 2025] were as follows:

| Square footage (in thousands) | | [removed: 3,623] [added: 3,603] | |

(1)Includes [removed: 32] [added: 31] Best Buy Mobile [added: stand-alone] stores.

The ownership status of our stores [added: by segment] at the end of fiscal [removed: 2024] [added: 2025] was as follows:

The ownership status and total square footage of space utilized for distribution [added: by segment] at the end of fiscal [removed: 2024] [added: 2025] were as follows:

| Domestic | | | | | | [removed: 14,987] [added: 15,637] | | | | 3,168 | |

We also lease additional [removed: domestic and international] office space to support and carry out our business operations.

| Domestic | | 901 | | | | 24 | | | | 32 | |

| International | | | | | | 1,418 | | | | \- | |

| Domestic | | 910 | | | | 23 | | | | 32 | |

| International | | | | | | 1,496 | | | | \- | |

| Corie S. Barry | | [removed: 48] [added: 49] | | Chief Executive Officer | | | [removed: 24] [added: 25] | |

| Matt Bilunas | | [removed: 51] [added: 52] | | Senior Executive Vice [removed: President of Enterprise Strategy,] [added: President,] Chief Financial Officer [added: & Enterprise Strategy] | | | [removed: 18] [added: 19] | |

[removed: | Jason Bonfig | | 47 | |] [added: Jason Bonfig is our] Senior Executive Vice President of Customer [removed: Offerings and] [added: Offering,] Fulfillment [removed: | | | 25 | |][added: and Best Buy Canada.]

| Damien Harmon | | [removed: 45] [added: 46] | | Senior Executive Vice [removed: President of Customer,] [added: President,] Channel [added: & Customer] Experiences & Enterprise Services | | | [removed: 5] [added: 6] | |

| Todd G. Hartman | | [removed: 57] [added: 58] | | [added: Executive Vice President,] General [removed: Counsel and] [added: Counsel,] Chief Risk Officer [added: & Secretary] | | | [removed: 18] [added: 19] | |

| Kamy Scarlett | | [removed: 60] [added: 61] | | Senior Executive Vice [removed: President of Human Resources,] [added: President,] Corporate Affairs [removed: and Canada] [added: & Human Resources] | | | [removed: 10] [added: 11] | |

| Mathew R. Watson | | [removed: 53] [added: 54] | | Senior Vice President, Controller and Chief Accounting Officer | | | [removed: 18] [added: 19] | |

Barry [removed: was appointed] [added: is] our Chief Executive Officer [removed: in 2019.][added: (“CEO”).]

Prior to [removed: her current role,] [added: becoming CEO in June 2019,] she [removed: served as our] [added: was the company’s] chief financial officer & chief strategic transformation [removed: officer responsible for] [added: officer,] overseeing [removed: all aspects of] strategic transformation and growth, digital and technology, global finance, investor relations, enterprise risk and compliance, integration management and Best Buy Health.

Ms. Barry joined Best Buy in 1999 and has held a variety of financial and operational roles [removed: within] [added: across] the organization, both in the field and at corporate.

[removed: Her prior roles include: the company’s chief strategic growth officer and the interim leader of Best Buy’s services organization from 2015 until 2016;] [added: She also served as] senior vice president of domestic finance from 2013 to 2015; vice president, chief financial officer and business development of our home business group from 2012 to 2013; and vice president, finance of the home customer solutions group from 2010 to 2012.

[removed: Ms. Barry serves] [added: Additionally, she has served] on the board of directors for [removed: Best Buy Co., Inc., and] Domino’s Pizza Inc. [added: since July 2018] and [added: serves on] the board of trustees for the College of St. Benedict.

She [added: is] also [added: a member of the Business Roundtable,] serves on the executive [removed: committee] [added: committees] for the Business [removed: Roundtable, Business Council, Retail Industry Leaders Association] [added: Council] and the Minnesota Business [removed: Partnership.][added: Partnership, and serves as the Chairwoman of the Retail Industry Leaders Association.]

Matt Bilunas is our Senior Executive Vice [removed: President of Enterprise Strategy,] [added: President,] Chief Financial Officer [removed: (“CFO”).][added: (“CFO”) & Enterprise Strategy.]

Since joining Best Buy in 2006, Mr. Bilunas has served in a variety of financial leadership roles, both in the field and at [removed: the corporate campus.][added: corporate.]

[removed: Jason Bonfig is our] [added: | Jason Bonfig | | 48 | |] Senior Executive Vice [removed: President of] [added: President,] Customer [removed: Offerings and Fulfillment.][added: Offering, Fulfilment & Best Buy Canada | | | 26 | |]

In this role, he oversees all elements of [removed: merchandising and product category management,] [added: merchandising, ecommerce,] supply chain and [removed: marketing for] [added: marketing, including] Best Buy’s [removed: core U.S. business.][added: retail media network, Best Buy Ads.]

He also [added: oversees the Best Buy Canada business and] leads the company’s Exclusive Brands private-label team.

Prior to his current role, Mr. Bonfig served in the positions of chief category officer – computing, mobile, gaming, exclusive brands, printing, wearables and accessories from 2018 to 2019; [added: and] senior vice president – computing, mobile, tablets, wearables, printing and accessories from 2014 to 2018.

Damien Harmon is our Senior Executive Vice President of [removed: Customer,] Channel [added: & Customer] Experiences & Enterprise Services.

His areas of responsibility include [added: Best Buy’s retail] stores and operations, in-home services and sales, virtual experiences, [removed: call centers, membership, and] customer [removed: strategy, relationship offerings] [added: care] and [removed: insights.][added: customer strategy.]

Mr. Harmon first joined Best Buy as a [added: store] general manager in 2005 and held various leadership positions in store [removed: operations, international operations and store leadership, including vice president of retail operations and services.][added: operations.]

Mr. Hartman sits on the advisory board of Markaaz, Inc. He serves as [removed: treasurer] [added: chair] of the [added: Best Buy Foundation and is on the board of the] Retail Litigation Center and [removed: as chair of the Best Buy Foundation.][added: Equal Justice Works.]

Kamy Scarlett is our Senior Executive Vice President of [removed: Human Resources,] Corporate Affairs [removed: and Canada.][added: & Human Resources.]

In this role, she oversees talent development and the health and well-being of our employees worldwide, communications and public [removed: affairs, and our Canadian business.][added: affairs.]

She also assumed responsibility for [removed: Best Buy Canada in 2021 and] communications and public affairs in 2023.

She [removed: previously] served as our president of U.S. retail stores from 2019 until 2020 and was responsible for the execution and operation of all domestic Best Buy store locations.

She also previously held leadership roles at Loblaw Cos., Hudson’s Bay Co. and Dylex Inc. Ms. Scarlett [removed: serves] [added: has served] on the board of [removed: the Best Buy Foundation] [added: Dollar General Corporation since August 2024] and previously served on the board of Floor & [removed: Décor, a specialty retailer of hard surface flooring.][added: Décor.]

He previously served as our vice president, controller and chief accounting officer from [removed: April] 2015 until his current role.

Mr. Watson served in the role of vice president, finance - controller from 2014 to [removed: April] 2015.

(As of March 19, 2025)

She also serves on the company’s board of directors.

She became the chief financial officer in 2016 and prior to that served as the company’s chief strategic growth officer and the interim leader of Best Buy’s services organization from 2015 until 2016.

In his role, Mr. Harmon leads Geek Squad.

He is an adjunct faculty member at the University of Minnesota Law School.

She previously had responsibility for Best Buy Canada from 2021 to 2024, with oversight and responsibility for Canadian business performance.

(As of March 13, 2024)

Mr. Bilunas has been a key finance leader during Best Buy’s transformation.

Mr. Bonfig serves on the board of the Best Buy Foundation.

He is responsible for the end-to-end customer experience and the work that enhances every interaction with our customers and employees in his organization.

In his role, Mr. Harmon leads Geek Squad, a national tech-support organization dedicated to helping customers learn about and enjoy their technology.

He established a dedicated operations plan to enhance the Company’s ability to create seamless experiences for our customers.

He also oversaw our real estate portfolio, stores, operations, services and experiences that span from stores to virtual to in customers’ homes.

He also sits on the board of the Guthrie Theater and on the board of Trademark Theater.

Additionally, Ms. Scarlett serves as Executive Vice President of Best Buy Canada, where the Company operates more than 150 stores.

She was responsible for sales and profits in the Company’s stores, in addition to enacting the human resources and talent management strategies for the Canadian operations.

On [removed: February 29, 2024,] [added: March 4, 2025,] we announced the Board’s approval of a [removed: 2%] [added: 1%] increase in the regularly quarterly cash dividend to [removed: $0.94] [added: $0.95] per share.

As of March [removed: 13, 2024,] [added: 17, 2025,] there were [removed: 1,898] [added: 1,866] holders of record of our common stock.

On February 28, 2022, our Board approved a $5.0 billion share repurchase [removed: authorization, which replaced the $5.0 billion share repurchase program authorized on February 16, 2021.][added: authorization.]

During fiscal [removed: 2024,] [added: 2025,] we repurchased and retired [removed: 4.7] [added: 5.8] million shares at a cost of [removed: $340] [added: $500] million.

For additional information, see “Share Repurchases and Dividends” in Item 7, *Management’s Discussion and Analysis of Financial Condition and Results of Operations*, and Note [removed: 9,] [added: 8,] *Shareholders’ Equity*, of the Notes to Consolidated Financial Statements, included in Item 8, *Financial Statements and Supplementary Data*, of this Annual Report on Form 10-K.

Information regarding our repurchases of common stock during the fourth quarter of fiscal [removed: 2024] [added: 2025] was as follows:

The graph assumes an investment of $100 at the close of trading on [removed: February 1, 2019,] [added: January 31, 2020,] the last trading day of fiscal [removed: 2019,] [added: 2020,] in our common stock, the S&P 500 Index and the S&P 500 Consumer Discretionary Distribution & Retail Index.

[removed: Description automatically generated with medium confidence](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203x10kg002.jpg)][added: AI-generated content may be incorrect.](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201x10kg002.jpg)]

| Fiscal Years Ended | February [removed: 2, 2019 | | | | February] 1, 2020 | | | | January 30, 2021 | | | | January 29, 2022 | | | | January 28, 2023 | | | | February 3, 2024 | | | [added: | February 1, 2025 | | |]

| Nov. 3, 2024 through Nov. 30, 2024 | \- | | | $ | \- | | | \- | | | $ | 3,499,000,000 | |

| Dec. 1, 2024 through Jan. 4, 2025 | 1,059,305 | | | $ | 86.92 | | | 1,059,305 | | | $ | 3,407,000,000 | |

| Jan. 5, 2025 through Feb. 1, 2025 | 1,457,336 | | | $ | 84.35 | | | 1,457,336 | | | $ | 3,284,000,000 | |

| Total fiscal 2025 fourth quarter | 2,516,641 | | | $ | 85.43 | | | 2,516,641 | | | $ | 3,284,000,000 | |

![A graph of the number of companies

| Best Buy Co., Inc. | $ | 100.00 | | | $ | 132.06 | | | $ | 121.58 | | | $ | 110.85 | | | $ | 103.47 | | | $ | 122.43 | |

| S&P 500 | $ | 100.00 | | | $ | 117.25 | | | $ | 144.56 | | | $ | 132.68 | | | $ | 160.30 | | | $ | 202.59 | |

| S&P 500 Consumer Discretionary Distribution & Retail | $ | 100.00 | | | $ | 141.39 | | | $ | 153.61 | | | $ | 125.62 | | | $ | 162.21 | | | $ | 227.91 | |

| Oct. 29, 2023 through Nov. 25, 2023 | 952,139 | | | $ | 66.06 | | | 952,139 | | | $ | 3,784,000,000 | |

| Nov. 26, 2023 through Dec. 30, 2023 | \- | | | $ | \- | | | \- | | | $ | 3,784,000,000 | |

| Dec. 31, 2023 through Feb. 3, 2024 | \- | | | $ | \- | | | \- | | | $ | 3,784,000,000 | |

| Total fiscal 2024 fourth quarter | 952,139 | | | $ | 66.06 | | | 952,139 | | | $ | 3,784,000,000 | |

![A graph of a graph

| | | | | | | | | | | | | | | | | | | | | | | | |

| Best Buy Co., Inc. | $ | 100.00 | | | $ | 148.97 | | | $ | 196.72 | | | $ | 181.12 | | | $ | 165.13 | | | $ | 154.14 | |

| S&P 500 | $ | 100.00 | | | $ | 121.68 | | | $ | 142.67 | | | $ | 175.90 | | | $ | 161.45 | | | $ | 195.06 | |

| S&P 500 Consumer Discretionary Distribution & Retail | $ | 100.00 | | | $ | 117.54 | | | $ | 166.19 | | | $ | 180.56 | | | $ | 147.66 | | | $ | 190.67 | |

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we assessed the effectiveness of our internal control over financial reporting as of February [removed: 3, 2024,] [added: 1, 2025,] using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in *Internal Control — Integrated Framework (2013).* Based on our assessment, we have concluded that our internal control over financial reporting was effective as of February [removed: 3, 2024.][added: 1, 2025.]

Deloitte & Touche LLP, the independent registered public accounting firm that audited our consolidated financial statements for the year ended February [removed: 3, 2024,] [added: 1, 2025,] included in Item 8, *Financial Statements and Supplementary Data,* of this Annual Report on Form 10-K, has issued an unqualified attestation report on our internal control over financial reporting as of February [removed: 3, 2024.][added: 1, 2025.]

We have audited the accompanying consolidated balance sheets of Best Buy Co., Inc. and subsidiaries (the "Company") as of February [removed: 3, 2024] [added: 1, 2025,] and [removed: January 28, 2023,] [added: February 3, 2024,] the related consolidated statements of earnings, comprehensive income, cash flows and changes in shareholders’ equity for each of the three years in the period ended February [removed: 3, 2024,] [added: 1, 2025,] and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February [removed: 3, 2024] [added: 1, 2025,] and [removed: January 28, 2023,] [added: February 3, 2024,] and the results of its operations and its cash flows for each of the three [added: fiscal] years in the period ended February [removed: 3, 2024,] [added: 1, 2025,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of February [removed: 3, 2024,] [added: 1, 2025,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March [removed: 15, 2024,] [added: 19, 2025,] expressed an unqualified opinion on the Company's internal control over financial reporting.

Goodwill – Best Buy Health Reporting Unit — Refer to Note 1 [added: and Note 3] to the financial statements

The goodwill balance was [removed: $1,383] [added: $908] million as of February [removed: 3, 2024,] [added: 1, 2025,] of which [removed: $891] [added: $416] million was related to the Best Buy Health reporting unit.

The Company [added: primarily] uses a [removed: combination of the] discounted cash flow [removed: model and market data] [added: analysis] to estimate the fair value of the Best Buy Health reporting unit.

The discounted cash flow [removed: model] [added: analysis] requires management to make subjective estimates and assumptions related to forecasts of cash flows, such as revenue growth rates and margin rates, and estimates of the weighted average cost of capital rate.

We evaluated the reasonableness of management’s revenue forecasts and margin rates by comparing the forecasts to: (1) the Company’s historical revenue growth [removed: rates, including, for new products and services, similar existing products and services;] [added: rates;] (2) internal communications to management and the board of directors; (3) underlying source documents, when available, such as customer contracts; (4) forecasted information included in industry reports, applicable market data, and certain peer companies; and (5) underlying analyses detailing business strategies and growth plans.

We have audited the internal control over financial reporting of Best Buy Co., Inc. and subsidiaries (the “Company”) as of February [removed: 3, 2024,] [added: 1, 2025,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February [removed: 3, 2024,] [added: 1, 2025,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended February [removed: 3, 2024,] [added: 1, 2025,] of the Company and our report dated March [removed: 15, 2024,] [added: 19, 2025,] expressed an unqualified opinion on those financial statements.

| | February [added: 1, 2025 | | | | February] 3, 2024 | | | | January 28, 2023 | | |

| Cash and cash equivalents | $ | [added: 1,578 | | | $ |] 1,447 | | | $ | 1,874 | |

| Receivables, net | | [removed: 939] [added: 1,044] | | | | [removed: 1,141] [added: 939] | |

| Merchandise inventories | | [removed: 4,958] [added: 5,085] | | | | [removed: 5,140] [added: 4,958] | |

| Other current assets | | [removed: 553] [added: 517] | | | | [removed: 647] [added: 553] | |

| Total current assets | | [removed: 7,897] [added: 8,224] | | | | [removed: 8,802] [added: 7,897] | |

| Land and buildings | | [removed: 702] [added: 722] | | | | [removed: 688] [added: 702] | |

| Leasehold improvements | | [removed: 2,275] [added: 2,370] | | | | [removed: 2,260] [added: 2,275] | |

| Fixtures and equipment | | [removed: 4,002] [added: 3,872] | | | | [removed: 3,928] [added: 4,002] | |

| Property under finance leases | | [removed: 97] [added: 88] | | | | [removed: 100] [added: 97] | |

| Gross property and equipment | | [removed: 7,076] [added: 7,052] | | | | [removed: 6,976] [added: 7,076] | |

| Less accumulated depreciation | | [removed: 4,816] [added: 4,930] | | | | [removed: 4,624] [added: 4,816] | |

| [removed: Net] [added: Total] property and [removed: equipment] [added: equipment, net] | [added: $] | [added: 2,122 | | | $ |] 2,260 | | | [added: $] | 2,352 | |

| Operating lease assets | | [removed: 2,758] [added: 2,833] | | | | [removed: 2,746] [added: 2,758] | |

| Goodwill | | [removed: 1,383] [added: 908] | | | | 1,383 | |

| Other assets | | [removed: 669] [added: 695] | | | | [removed: 520] [added: 669] | |

| [removed: Total assets] [added: Total assets] | $ | [added: 14,782 | | | $ |] 14,967 | | | $ | 15,803 | |

| Accounts payable | $ | [removed: 4,637] [added: 4,980] | | | $ | [removed: 5,687] [added: 4,637] | |

| Unredeemed gift card liabilities | | 253 | | | | [removed: 274] [added: 253] | |

| Deferred revenue | | [removed: 1,000] [added: 951] | | | | [removed: 1,116] [added: 1,000] | |

| Accrued compensation and related expenses | | [removed: 486] [added: 464] | | | | [removed: 405] [added: 486] | |

| Accrued liabilities | | [removed: 902] [added: 741] | | | | [removed: 843] [added: 902] | |

| Current portion of operating lease liabilities | | [removed: 618] [added: 617] | | | | [removed: 638] [added: 618] | |

| Current portion of long-term debt | | [removed: 13] [added: 10] | | | | [removed: 16] [added: 13] | |

| Total current liabilities | | [removed: 7,909] [added: 8,016] | | | | [removed: 8,979] [added: 7,909] | |

| Long-term operating lease liabilities | | [removed: 2,199] [added: 2,282] | | | | [removed: 2,164] [added: 2,199] | |

| Long-term liabilities | | [removed: 654] [added: 532] | | | | [removed: 705] [added: 654] | |

The Company recorded a goodwill impairment of $475 million related to the Best Buy Health reporting unit in the year ended February 1, 2025.

March 19, 2025

March 19, 2025

| Goodwill impairment | | 475 | | | | \- | | | | \- | |

| Net earnings | $ | 927 | | | $ | 1,241 | | | $ | 1,419 | |

| Net earnings | $ | 927 | | | $ | 1,241 | | | $ | 1,419 | |

| Restructuring charges | | (3) | | | | 153 | | | | 147 | |

| Goodwill impairment | | 475 | | | | \- | | | | \- | |

| Balances as of February 1, 2025 | | 211.4 | | | $ | 22 | | | $ | \- | | | $ | 2,486 | | | $ | 300 | | | $ | 2,808 | |

Our Domestic and International segments generate revenue from the sale of products and services within six revenue categories: computing and mobile phones, consumer electronics, appliances, entertainment, services and other.

In the fourth quarter of fiscal 2025, we adopted Accounting Standards Update (“ASU”) 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*, issued by the Financial Accounting Standards Board (“FASB”).

See Note 13, *Segment and Geographic Information,* for the applicable new disclosures.

Unadopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which requires disclosure of specific expense categories in the notes to financial statements.

‎

No adjustment is recorded for inventory that we expect to return to our vendors for full credit.

We have elected to account for these lease agreements with both lease and non-lease components as a single component for all classes of assets.

In fiscal 2025, we recorded a goodwill impairment related to our Best Buy Health reporting unit.

We use a combination of discounted cash flow (“DCF”) analysis and market data, such as revenue multiples and quoted market prices, for observable comparable companies.

DCF analysis requires detailed forecasts of cash flow drivers, such as revenue growth rates, margin rates and capital investments, and estimates of weighted-average cost of capital rates.

The goodwill impairment recorded in the fourth quarter of fiscal 2025 related to our Best Buy Health reporting unit was a triggering event to evaluate Best Buy Health intangible assets for impairment.

No intangible asset impairments were identified.

We do not amortize indefinite-lived intangible assets, but test for impairment annually in the fiscal fourth quarter or whenever events or circumstances indicate that the carrying value may not be recoverable.

We utilize the relief from royalty method to determine the fair value of our indefinite-lived intangible asset.

If the carrying value exceeds its fair value, we recognize an impairment loss in an amount equal to the excess.

Refer to Note 3, *Goodwill and Intangible Assets*, for additional information.

Net cash flows related to our net investment hedges are presented within Investing activities on our Consolidated Statements of Cash Flows.

*Fair Value Hedges*

Net cash flows related to our fair value hedges are presented within Operating activities on our Consolidated Statements of Cash Flows.

Net cash flows related to our derivatives not designated as hedging instruments are presented within Operating activities on our Consolidated Statements of Cash Flows.

Refer to Note 5, *Derivative Instruments*, for additional information.

In fiscal 2025, we recorded a goodwill impairment related to our Best Buy Health reporting unit within Goodwill impairment on our Consolidated Statements of Earnings.

Refer to Note 3, *Goodwill and Intangible Assets*, and Note 4, *Fair Value Measurements*, for additional information.

| Accrued compensation and related expenses | $ | 23 | | | $ | 41 | |

Refer to Note 10, *Income Taxes*, for additional information.

| | | | |

| --- | --- | --- | --- |

| Supply chain financing liability at beginning of period | $ | 426 | |

| Invoices confirmed during the year | | 4,048 | |

| Confirmed invoices paid during the year | | (4,076) | |

The fair value of the Best Buy Health reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was recognized.

March 15, 2024

| Acquisitions, net of cash acquired | | \- | | | | \- | | | | (468) | |

| Balances as of January 30, 2021 | | 256.9 | | | $ | 26 | | | $ | \- | | | $ | 4,233 | | | $ | 328 | | | $ | 4,587 | |

In fiscal 2022, we acquired all of the outstanding shares of Current Health Ltd. (“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”).

Refer to Note 3, *Restructuring*, for additional information regarding our exit from operations in Mexico.

In the first quarter of fiscal 2024, we adopted the Accounting Standards Update (“ASU”) 2022-04, *Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations*.

ASU 2022-04 requires entities to disclose the key terms of the supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period.

Beginning in fiscal 2025, an annual roll-forward of such obligations is also required.

Below are the applicable disclosures as a result of ASU 2022-04.

New Accounting Pronouncements and Disclosure Rules

In March 2024, the U.S. Securities and Exchange Commission issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material.

Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025.

We are currently evaluating the impact of the new rule and expect to include updated climate-related disclosures in our fiscal 2026 Form 10-K.

Business Combinations

We account for business combinations under the acquisition method of accounting.

This method requires the recording of acquired assets and assumed liabilities at their acquisition date fair values.

The excess of the purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill.

Results of operations related to business combinations are included prospectively beginning with the date of acquisition and transaction costs related to business combinations are recorded within Selling, general and administrative expenses (“SG&A”) on our Consolidated Statements of Earnings.

For lease agreements entered into or reassessed after the adoption of Accounting Standard’s Codification 842, *Leases*, in fiscal 2020, we have elected to combine lease and non-lease components for all classes of assets.

The following tables illustrate the primary costs classified in each major expense category.

Acquisitions

*Current Health Ltd.*

In fiscal 2022, we acquired all outstanding shares of Current Health, a care-at-home technology platform, on November 2, 2021, for net cash consideration of $389 million.

The acquisition resulted in $351 million of goodwill that was assigned to our Best Buy Health reporting unit and was deductible for income tax purposes.

The acquisition is aligned with our focus in virtual care to enable people in their homes to connect seamlessly with their health care providers and is included in our Domestic reportable segment and Services revenue category.

The acquisition was not material to the results of our operations.

*Two Peaks, LLC d/b/a Yardbird Furniture*

In fiscal 2022, we acquired all outstanding shares of Yardbird, a direct-to-consumer outdoor furniture company, on November 4, 2021, for net cash consideration of $79 million.

The acquisition resulted in $47 million of goodwill that was assigned to our Best Buy Domestic reporting unit and was deductible for income tax purposes.

The acquisition expands our assortment in categories like outdoor living and was not material to the results of our operations.

| Fiscal 2020 U.S. Retail Operating Model Changes | | | | | | | \- | | | | \- | | | | 1 | |

(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022.

We currently expect to incur additional charges in fiscal 2025, primarily within our Domestic segment, of approximately $10 million to $30 million related to this plan.

There were no cash payments related to this plan during fiscal 2024 and our termination benefits liability as of February 3, 2024, was $171 million, comprised of $163 million in our Domestic segment and $8 million in our International segment.

We expect to pay up to $135 million of employee termination benefits during fiscal 2025, with the remainder being paid in fiscal 2026.

| Charges | | | | | | | 145 | | | | 5 | | | | 150 | |

*Mexico Exit and Strategic Realignment*

In the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy.

Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico.

Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), as of February [removed: 3, 2024.][added: 1, 2025.]

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of February [removed: 3, 2024,] [added: 1, 2025,] our disclosure controls and procedures were effective.

There were no changes in internal control over financial reporting during the fiscal fourth quarter ended February [removed: 3, 2024,] [added: 1, 2025,] that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Set forth below are developments regarding trading plan arrangements among our directors and officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) for the quarter ended February [removed: 3, 2024.][added: 1, 2025.]

After the completion of his prior trading plan on December 11, 2024, Matthew Bilunas, the company’s Senior Executive Vice President of Enterprise Strategy and Chief Financial Officer, entered into a new trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

The new trading plan was entered into on December 19, 2024, and provides for the potential sale of up to 51,000 shares of our common stock through April 25, 2025.

On December 6, 2023, Jason Bonfig, the Company’s Senior Executive Vice President of Customer Offerings and Fulfillment, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, providing for the potential sale of up to 28,500 shares of our common stock through February 28, 2025.

The information required by this Item is incorporated by reference to the applicable information in the [removed: Company’s] [added: company’s] Proxy Statement for the [removed: 2024] [added: 2025] Regular Meeting of Shareholders (the [removed: “2024] [added: “2025] Proxy Statement”), which is expected to be filed with the SEC on or before [removed: June] [added: May] 2, [removed: 2024.][added: 2025.]

The information required by this Item is incorporated by reference to the applicable information in the [removed: 2024] [added: 2025] Proxy Statement.

The information required by this Item is incorporated by reference to the applicable information in the [removed: 2024] [added: 2025] Proxy Statement.

The information required by this Item is incorporated by reference to the applicable information in the [removed: 2024] [added: 2025] Proxy Statement.

The information required by this Item related to our principal accountant, Deloitte & Touche LLP (PCAOB ID No. 34) is incorporated by reference to the applicable information in the [removed: 2024] [added: 2025] Proxy Statement.

| [removed: [4.6](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex4_6.htm)] [added: [4.6](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex4_6.htm)] | | [Description of [removed: Securities](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex4_6.htm)] [added: Securities](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex4_6.htm)] | | | | | | | | X |

| [removed: [21.1](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex21_1.htm)] [added: [21.1](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex21_1.htm)] | | [Subsidiaries of the [removed: Registrant](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex21_1.htm)] [added: Registrant](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex21_1.htm)] | | | | | | | | X |

| [removed: [23.1](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex23_1.htm)] [added: [23.1](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex23_1.htm)] | | [Consent of Deloitte & Touche [removed: LLP](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex23_1.htm)] [added: LLP](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex23_1.htm)] | | | | | | | | X |

| [removed: [31.1](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex31_1.htm)] [added: [31.1](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex31_1.htm)] | | [Certification of the Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex31_1.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex31_1.htm)] | | | | | | | | X |

| [removed: [31.2](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex31_2.htm)] [added: [31.2](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex31_2.htm)] | | [Certification of the Chief Financial Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex31_2.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex31_2.htm)] | | | | | | | | X |

| [removed: [32.1](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex32_1.htm)] [added: [32.1](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex32_1.htm)] | | [Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex32_1.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex32_1.htm)] | | | | | | | | X |

| [removed: [32.2](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex32_2.htm)] [added: [32.2](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex32_2.htm)] | | [Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex32_2.htm)] [added: 2002](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex32_2.htm)] | | | | | | | | X |

| [removed: [97.1](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex97_1.htm)] [added: [97.1](http://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex97_1.htm)] | | [Policy Regarding the Recoupment of Erroneously Awarded [removed: Compensation](https://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex97_1.htm)] [added: Compensation](http://www.sec.gov/Archives/edgar/data/764478/000076447824000010/bby-20240203xex97_1.htm)] | | [added: 10-K] | | [added: 97.1] | | [added: 3/15/2024] | | [removed: X] |

| 101 | | The following financial information from our Annual Report on Form 10-K for fiscal [removed: 2024,] [added: 2025,] filed with the SEC on March [removed: 15, 2024,] [added: 19, 2025,] formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the consolidated balance sheets at February [added: 1, 2025, and February] 3, 2024, [removed: and January 28, 2023,] (ii) the consolidated statements of earnings for the years ended February [added: 1, 2025, February] 3, 2024, [added: and] January 28, 2023, [removed: and January 29, 2022,] (iii) the consolidated statements of comprehensive income for the years ended February [added: 1, 2025, February] 3, 2024, [added: and] January 28, 2023, [removed: and January 29, 2022,] (iv) the consolidated statements of cash flows for the years ended February [added: 1, 2025, February] 3, 2024, [added: and] January 28, 2023, [removed: and January 29, 2022,] (v) the consolidated statements of changes in shareholders' equity for the years ended February [added: 1, 2025, February] 3, 2024, [added: and] January 28, 2023, and [removed: January 29, 2022, and] (vi) the Notes to Consolidated Financial Statements. | | | | | | | | |

| 104 | | The cover page from our Annual Report on Form 10-K for fiscal [removed: 2024,] [added: 2025,] filed with the SEC on March [removed: 15, 2024,] [added: 19, 2025,] formatted in iXBRL (included as Exhibit 101). | | | | | | | | |

| [*10.41](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_1.htm) | | [Form of Best Buy Co., Inc. Long-Term Incentive Award Agreement (2024) – Restricted Shares](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_1.htm) | | 10-Q | | 10.1 | | 6/7/2024 | | |

| [*10.42](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_2.htm) | | [Form of Best Buy Co., Inc. Long-Term Incentive Award Agreement (2024) – Restricted Stock Units](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_2.htm) | | 10-Q | | 10.2 | | 6/7/2024 | | |

| [*10.43](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_4.htm) | | [Restated Best Buy Severance Plan and Summary Plan Description (2023)](http://www.sec.gov/Archives/edgar/data/764478/000076447824000022/bby-20240504xex10_4.htm) | | 10-Q | | 10.4 | | 6/7/2024 | | |

| [*10.44](http://www.sec.gov/Archives/edgar/data/764478/000076447824000035/bby-20240803xex10_1.htm) | | [Form of Best Buy Co., Inc. Long-Term Incentive Award Agreement (2024) – Directors](http://www.sec.gov/Archives/edgar/data/764478/000076447824000035/bby-20240803xex10_1.htm) | | 10-Q | | 10.1 | | 9/6/2024 | | |

| [19.1](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex19_1.htm) | | [Securities Trading Policy](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201xex19_1.htm) | | | | | | | | X |

| /s/ Corie Barry | | Chief Executive Officer | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Matthew Bilunas | | Senior Executive Vice [removed: President of Enterprise Strategy,] [added: President,] Chief Financial Officer [added: & Enterprise Strategy] | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Mathew R. Watson | | Senior Vice President, Controller and Chief Accounting Officer | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Lisa M. Caputo | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ David W. Kenny | | [removed: Director] [added: Chairman] | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ David C. Kimbell | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Mario J. Marte | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Karen A. McLoughlin | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Claudia F. Munce | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Richelle P. Parham | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Steven E. Rendle | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Sima D. Sistani | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| /s/ Melinda D. Whittington | | Director | | March [removed: 15, 2024] [added: 19, 2025] |

| | | | | |

| /s/ J. Patrick Doyle | | Chairman | | March 15, 2024 |

| J. Patrick Doyle | | | | |

| /s/ Eugene A. Woods | | Director | | March 15, 2024 |

| Eugene A. Woods | | | | |