Best Buy 2014 Annual Report Download - page 41

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36
The following table reconciles our International segment stores open at the end of each of the last three fiscal years:
Fiscal 2012 Fiscal 2013 (11-Month)(1) 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
Canada
Future Shop 149 — (9) 140 — (3) 137
Best Buy 77 2 (7) 72 — — 72
Best Buy Mobile stand-alone 30 19 — 49 7 — 56
China
Five Star 204 12 (5) 211 2 (24) 189
Mexico
Best Buy 8 6 — 14 3 — 17
Express — 1 — 1 1 — 2
Total International segment stores 468 40 (21) 487 13 (27) 473
(1) Fiscal 2013 (11-month) includes store opening and closing activity for the month of January for China and Mexico.
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.
In fiscal 2014 (12-month), we experienced differing comparable store sales in the various geographies in our International
segment. In Canada, we experienced a comparable store sales decline, as sales were negatively impacted by lower industry
demand for consumer electronics. In China, we experienced a comparable store sales gain primarily due to a government
subsidy program that ended in May 2013, which positively impacted appliance sales, partially offset by increased competition
from online competitors putting pressure on prices across most product categories. We also started to implement our Renew
Blue initiatives in our International segment in fiscal 2014 (12-month). While our International segment continues to
experience revenue and gross profit challenges, we have made progress in stabilizing comparable store sales and reducing
SG&A expenses. Increased promotional activity and a higher mix of lower-margin products in Canada contributed to a decline
in our gross profit rate. The SG&A rate decline was primarily driven by Renew Blue cost reductions and tighter expense
management in Canada, and the elimination of expenses associated with previously closed stores in Canada and China.
The components of the International segment's 0.4% revenue decrease in fiscal 2014 (12-month) were as follows:
Extra month of revenue(1) 7.4 %
Comparable store sales impact (2.8)%
Net store changes (2.4)%
Impact of foreign currency exchange rate fluctuations (2.4)%
Non-comparable sales(2) (0.2)%
Total revenue decrease (0.4)%
(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.
(2) Non-comparable sales reflects the impact of revenue streams not included within our comparable store sales calculation, such as certain credit card
revenue, gift card breakage and sales of merchandise to wholesalers and dealers, as applicable.
The closure of large-format stores in Canada at the end of fiscal 2013 (11-month), as well as large-format Five Star store
closures in China over the past 12 months, contributed to the majority of the decrease in revenue associated with net store
changes in our International segment in fiscal 2014 (12-month). The addition of large-format stores in Mexico and small-format
Best Buy Mobile stand-alone stores in Canada partially offset these decreases.