Best Buy 2008 Annual Report Download - page 47

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The following table presents the International 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 39% 41% 5.4% 15.7%
Home office 30% 32% 7.7% 7.4%
Entertainment software 13% 12% 23.7% 11.3%
Appliances 13% 10% 6.5% 8.0%
Services(2) 5% 5% 14.7% 13.8%
Other(3) <1% <1% n/a n/a
Total 100% 100% 9.0% 11.7%
(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. The calculation of the comparable store sales percentage gain excludes the effect of
fluctuations in foreign currency exchange rates. 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.
(2) Services consists primarily of commissions from the sale of extended service contracts; revenue from computer-related services;
product repair revenue; and delivery and installation revenue derived from home theater, mobile audio and appliances.
(3) Other includes gift card breakage, which is excluded from our calculation of comparable store sales. Other also includes revenue
associated with Canada’s private label credit card program and revenue from the sale of products that are not related to our core
offerings. For these reasons, we do not provide a comparable store sales metric for this revenue category.
Our International segment’s comparable store sales gain reflecting an increase in the sales of video gaming
in fiscal 2008 reflected an increase in the average hardware and software, partially offset by an expected
transaction amount, which was driven by continued growth decline in the sales of computer software and CDs. The
in the sales of higher-priced products. The products having appliances revenue category recorded a 6.5% comparable
the largest positive effect on our International segment’s store sales gain resulting primarily from increases in the
comparable store sales gain were video gaming hardware sales of appliances in our Five Star operations, where
and software, flat-panel televisions, notebook computers appliances represent a larger percentage of the sales and
and navigation products. Growth in the sales of these whose results were included in the comparable store sales
products was partially offset by comparable store sales figures for the first time in fiscal 2008. Our services
declines in projection and tube televisions, computer revenue category posted a 14.7% comparable store sales
software and CDs. gain due primarily to an increase in revenue from our
product repair business.
In fiscal 2008, our International segment’s consumer
electronics revenue category posted a 5.4% comparable Our International segment’s gross profit rate in fiscal 2008
store sales gain resulting primarily from gains in the sales decreased by 0.9% of revenue to 20.7% of revenue. Our
of flat-panel televisions, navigation products and digital China operations, which operate at a significantly lower
cameras, partially offset by declines in the sales of tube gross profit rate than our Canada operations, reduced our
and projection televisions and MP3 players and International segment’s gross profit rate by approximately
accessories. The home office revenue category posted a 0.7% of revenue in fiscal 2008. The remainder of the
7.7% comparable store sales gain, which resulted from decrease in our International segment’s gross profit rate
comparable store sales gains in notebook and desktop was due primarily to the increased sales of lower-margin
computers, partially offset by a decline in the sales of products in both our Canada and China operations, which
cellular phones. The entertainment software revenue was partially offset by rate improvements in certain product
category recorded a 23.7% comparable store sales gain categories as well as lower financing costs in Canada.
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