Best Buy 2016 Annual Report Download - page 3

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Dear Fellow Shareholders:
As we enter the fourth year of our transformation, I am pleased to report the following:
1) We continued to make significant progress in FY16 toward our key goals.
2) We returned $1.5 billion of cash to our shareholders this past year and articulated
a clear capital return strategy and plan as we began FY17.
3) We have entered the next phase of our transformation, and I am happy to provide
some color around our growth strategy and our FY17 priorities.
4) We are benefiting from the strength of our Board of Directors and good
governance practices.
1. Fiscal Year 2016 Progress
In this past fiscal year, we made progress against the two problems identified at the
outset of this journey: declining comparable sales and declining margins. In fact, FY16
marked the second year in a row that we increased our domestic revenue and expanded
our operating margin.
This progress was made possible through our unrelenting focus on the Five Pillars of our
Renew Blue transformation.
Let me begin where all successful retailers start, with the customer experience. Last year
we saw continued improvement in customer satisfaction, having increased our Net
Promoter Score by more than 300 basis points.
In the spirit of striving to serve customers wherever and however they prefer, we grew
online domestic revenue 13% to more than $4 billion, or 11% of total domestic revenue.
This growth was fueled, in part, by a meaningfully improved website and the launch of
the enhanced Best Buy app that has consistently earned higher customer reviews than
most, if not all, of our competitors.
A MESSAGE FROM
HUBERT JOLY, CHAIRMAN & CEO