Best Buy 2014 Annual Report Download - page 37

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32
The following table reconciles our Domestic segment stores open at the end of each of the last three fiscal years:
Fiscal 2012 Fiscal 2013 (11-Month) Fiscal 2014
Total Stores
at End of
Fiscal Year Stores
Opened Stores
Closed
Total Stores
at End of
Fiscal Year Stores
Opened Stores
Closed
Total Stores
at End of
Fiscal Year
Best Buy 1,103 — (47) 1,056 — (1) 1,055
Best Buy Mobile stand-alone 305 105 (1) 409 12 (15) 406
Pacific Sales 34 — — 34 — (4) 30
Magnolia Audio Video 5 — (1) 4 — — 4
Total Domestic segment stores 1,447 105 (49) 1,503 12 (20) 1,495
Fiscal 2014 (12-month) Results Compared With Fiscal 2013 (11-month)
For purposes of this section, fiscal 2014 (12-month) represents the 12-month period ended February 1, 2014 and fiscal 2013
(11-month) represents the 11-month transition period ended February 2, 2013.
During fiscal 2014 (12-month), we made substantial progress against our Renew Blue priorities. First, we exceeded our original
Renew Blue annualized cost reduction targets. Second, we made progress stabilizing our comparable store sales and operating
income rate. In our Domestic segment, comparable stores sales were nearly flat for fiscal 2014 (12-month). Domestic operating
income increased in fiscal 2014 (12-month); however, this was driven by LCD-related legal settlements and lower restructuring
charges. Excluding these items, our operating income rate decreased primarily due to a lower gross profit rate, which was only
partially offset by cost reduction initiatives and tighter expense management.
The components of the 7.9% revenue increase in the Domestic segment in fiscal 2014 (12-month) were as follows:
Extra month of revenue(1) 8.2 %
Net store changes (0.2)%
Comparable store sales impact (0.1)%
Total revenue increase 7.9 %
(1) Represents the incremental revenue in fiscal 2014, which had 12 months of activity compared to 11 months in fiscal 2013 as a result of our fiscal year-end
change. 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 Annual Report on Form 10-K for further information.
The decrease in revenue from net store changes was primarily due to the closure of 47 large-format Best Buy branded stores in
the second and third quarter of fiscal 2013 (11-month). The opening and closing of small-format Best Buy Mobile stores had a
significantly smaller impact given their smaller size and limited category focus compared to our large-format stores.
The following table presents the Domestic segment's revenue mix percentages and comparable store sales percentage changes
by revenue category in fiscal 2014 (12-month) and 2013 (11-month):
Revenue Mix Summary Comparable Store Sales Summary
12 Months Ended 11 Months Ended 12 Months Ended 11 Months Ended
February 1, 2014 February 2, 2013 February 1, 2014 February 2, 2013
Consumer Electronics(1) 30% 32% (5.6)% (8.0)%
Computing and Mobile Phones(1) 48% 45% 4.7 % 7.4 %
Entertainment 8% 10% (16.3)% (21.4)%
Appliances 7% 6% 16.7 % 10.1 %
Services 6% 6% 0.2 % 0.8 %
Other 1% 1% n/a n/a
Total 100% 100% (0.4)% (1.7)%
(1) In fiscal 2014, e-Readers were moved from the "Consumer Electronics" revenue category to "Computing and Mobile Phones" to reflect the continued
convergence of their features with tablets and other computing devices.