Best Buy 2013 Annual Report Download - page 29

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29
our fiscal year 2013 transition period was 11 months and ended on February 2, 2013, and we began consolidating the results of
our Europe, China and Mexico operations on a one-month lag, compared to a two-month lag in fiscal year 2012, to continue
aligning our fiscal reporting periods with statutory filing requirements in certain foreign jurisdictions. As a result of our change
in fiscal year-end and resulting change in our lag period, the month of January 2012 was not captured in our consolidated fiscal
2013 (11-month) results for those entities reported on a one-month lag. Refer to Note 2, Fiscal Year-end Change, of the Notes
to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Transition
Report on Form 10-K for further information.
In this MD&A, when financial results for fiscal 2013 are compared to financial results for fiscal 2012, the results for the 11-
month transition period are compared to the results of the comparable 11-month recast period from fiscal 2012. When financial
results for fiscal 2012 are compared to financial results for fiscal 2011, the results are presented on the basis of our previous
fiscal year-end on a 12-month basis. Fiscal 2013 (11-month) and fiscal 2012 (11-month recast) included 48 weeks, fiscal 2012
included 53 weeks, and fiscal 2011 included 52 weeks. The following tables show the fiscal months included within the various
comparison periods in our MD&A:
Fiscal 2013 (11-month) Results Compared With Fiscal 2012 (11-month recast)(1)
2013 (11-month) 2012 (11-month recast)
March 2012 - January 2013 March 2011 - January 2012
(1) For entities reported on a lag, the fiscal months included in fiscal 2013 (11-month) and fiscal 2012 (11-month recast) were February through December.
Fiscal 2012 Results Compared With Fiscal 2011 (1)
2012 2011
March 2011 - February 2012 March 2010 - February 2011
(1) For entities reported on a lag, the fiscal months included in fiscal 2012 and fiscal 2011 were January through December.
Overview
We are a multi-national, e-commerce and physical retailer of consumer electronics, including mobile phones, tablets and
computers, large and small appliances, televisions, digital imaging, entertainment products and related accessories. We also
offer consumers technology services – including support, repair, troubleshooting and installation – under the Geek Squad
brand.
Best Buy operates as two reportable segments: Domestic and International. The Domestic segment is comprised of all
operations within the U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its
territories.
Our business, like that of many retailers, is seasonal. Historically, we have realized more of our revenue and earnings in the
fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Europe, Canada and Mexico.
While consumers view some of the products and services we offer as essential, others are viewed as discretionary purchases.
Consequently, our financial results are susceptible to changes in consumer confidence and other macroeconomic factors,
including unemployment, consumer credit availability, and the condition of the housing market. Consumer confidence and
macroeconomic trends continue to be uncertain, making customer traffic and spending patterns difficult to predict.
Additionally, there are other factors that directly impact our performance, such as product life-cycles (including the
introduction and pace of adoption of new technology) and the competitive retail environment. As a result of these factors,
predicting our future revenue and net earnings is difficult. However, we remain confident that our differentiated value
proposition continues to be valued by the consumer. Our value proposition is to offer: (1) the latest devices and services, all in
one place; (2) knowledgeable, impartial advice; (3) competitive prices; (4) the consumer's ability to shop Best Buy wherever
and whenever they like; and (5) technical and warranty support for the life of the product.
Revenue growth, along with disciplined capital allocation and expense control, remain key priorities for us as we navigate
through the current environment and work to grow our return on invested capital.
Throughout this MD&A, we refer to comparable store sales. Comparable store sales is a commonly used metric in the retail
industry, which compares revenue for a particular period with the corresponding period in the prior year, excluding the impact
of sales from new stores opened. Our comparable store sales is comprised of revenue from stores operating for at least 14 full
months, as well as revenue related to call centers, websites and online sales, and our other comparable sales channels. Revenue
we earn from sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation.
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