Best Buy 2004 Annual Report Download - page 3

Best Buy Co., Inc. 1
Contents
2 Letter to Shareholders
7Operating Review
16 11-Year Financial Highlights
18 Directors and Officers
19 Glossary
10-K Insert
23 Shareholder Information
Fiscal 2004 Key Wins
•We achieved revenue growth of 17 percent, to $24.5 billion, by
opening 78 new stores and increasing comparable store sales
by 7.1 percent.
•We increased earnings from continuing operations by 29 percent
through a combination of higher revenue and growth in the operating
income rate. This achievement brings the 10-year compound annual
growth rate in earnings from continuing operations to 34 percent.
•Cost savings from our efficient enterprise initiative and gross profit
rate gains helped fund the development and testing of our innovative
customer centricity strategy in 32 lab stores.
•Our customer satisfaction rating rose and we gained overall market
share, driven by share growth in key product areas including computers,
digital televisions, digital imaging products and entertainment software.
•Closer teamwork among our store, field and headquarters employees
and the positive attitude of our workforce helped drive exceptional
results throughout the year.
Fiscal 2005 Goals
•Build our revenue by 11 to 13 percent through opening approximately
70 new stores and garnering strong comparable store sales gains;
increase diluted earnings per share from continuing operations by
15 to 20 percent.
•Implement customer centricity in up to 110 additional stores in order
to improve our service to our best customers; in addition, transform
our corporate and field support teams to enable customer centricity.
•Increase efficiency by expanding our direct sourcing capability and
re-engineering our supply chain and customer contact centers to
be much more customer-driven.
•Expand the value-added services we can offer to customers, principally
through the roll out of Geek Squad’s®rapid-response, in-store and
in-home computer support task force to a total of approximately
45 markets.
•Create exclusive entertainment content for our customers and offer
any format they prefer for enjoying that content.
•Enhance our capability to let customers enjoy their favorite content
throughout their homes, cars and offices.
•Upgrade and renovate existing stores in key markets to ensure that
we remain competitive in customer experience over the next decade.
Minneapolis-based Best Buy Co., Inc.
(NYSE: BBY) is North America’s
leading specialty retailer of consumer
electronics, personal computers,
entertainment software and appli-
ances. The company’s subsidiaries
operate retail stores and/or Web
sites under the names: Best Buy
(BestBuy.com), Future Shop
(FutureShop.ca), Geek Squad
(GeekSquad.com) and Magnolia
Audio Video (MagnoliaAV.com).
The company’s subsidiaries reach
consumers through more than
750 stores in the United States
and Canada.