Best Buy 2008 Annual Report Download - page 43

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Segment Performance
Domestic
The following table presents selected financial data for our Domestic segment for each of the past three fiscal years ($ in
millions):
Domestic Segment Performance Summary 2008 2007(1)(2) 2006
Revenue $33,328 $31,031 $27,380
Revenue gain % 7% 13% 11%
Comparable store sales % gain(3) 1.9% 4.1% 5.1%
Gross profit as % of revenue 24.5% 24.8% 25.3%
SG&A as % of revenue 18.5% 18.7% 19.5%
Operating income $ 1,999 $ 1,900 $ 1,588
Operating income as % of revenue 6.0% 6.1% 5.8%
(1) Fiscal 2007 included 53 weeks. Fiscal 2008 and 2006 each included 52 weeks.
(2) Fiscal 2007 amounts have been adjusted to conform to the current-year presentation, which allocates to the International segment
certain SG&A support costs previously reported as part of the Domestic segment.
(3) Comprised of revenue at stores, call centers and Web sites operating for at least 14 full months, as well as remodeled and
expanded locations. Relocated stores are excluded from the comparable store sales calculation until at least 14 full months after
reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the
first anniversary of the date of acquisition. All comparable store sales percentage calculations reflect an equal number of weeks. The
method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable
store sales may not be the same as other retailers’ methods.
Our Domestic segment’s revenue in fiscal 2008 increased
Fiscal 2008 Results Compared With Fiscal 2007
7% to $33.3 billion. Excluding the impact of an extra
In fiscal 2008, our Domestic segment’s operating income week of business in fiscal 2007, revenue increased 9% in
was $2.0 billion, or 6.0% of revenue, compared with fiscal 2008. Excluding the impact of the extra week, the
$1.9 billion, or 6.1% of revenue, in fiscal 2007. The net addition of new stores accounted for nearly
Domestic segment’s operating income rate in fiscal 2008 eight-tenths of the revenue increase in fiscal 2008; the
benefited from revenue gains and an improvement in the 1.9% comparable store sales gain accounted for nearly
SG&A rate, partially offset by a decrease in the gross profit two-tenths of the revenue increase; and the remainder of
rate. the revenue increase was due to the non-comparable store
sales generated from the acquisition of Speakeasy.
The following table presents the Domestic segment’s revenue mix percentages and comparable store sales percentage
changes by revenue category in fiscal 2008 and 2007:
Revenue Mix Summary Comparable Store Sales Summary(1)
Year Ended Year Ended
March 1, 2008 March 3, 2007 March 1, 2008 March 3, 2007
Consumer electronics 41% 42% (2.4)% 8.3%
Home office 28% 27% 7.0% (1.2)%
Entertainment software 20% 19% 6.1% 2.4%
Appliances 5% 6% (5.0)% (1.7)%
Services(2) 6% 5% 4.1% 9.0%
Other(3) <1% <1% n/a n/a
Total 100% 100% 1.9% 4.1%
(1) Comprised of revenue at stores, call centers and Web sites operating for at least 14 full months, as well as remodeled and
expanded locations. Relocated stores are excluded from the comparable store sales calculation until at least 14 full months after
reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the
first anniversary of the date of acquisition. All comparable store sales percentage calculations reflect an equal number of weeks. The
method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable
store sales may not be the same as other retailers’ methods.
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