The document is the annual report for Best Buy Co., Inc for fiscal year 2002. It discusses how Best Buy extended its leadership in retailing in the past year through revenue growth of 28% to $19.6 billion, earnings growth of over 40% to $570 million, and acquiring Future Shop in Canada. It outlines goals to continue growing revenues and earnings by 17-21% in fiscal year 2003 through new store openings, comparable store sales growth, and leveraging capabilities across brands. Key opportunities discussed to further extend leadership are new markets, sales productivity gains, new products/services, and financial performance improvements.
Best Buy successfully met many challenges in fiscal 2003, including executive succession, a slowdown in consumer spending, and increased competition in certain product categories. Employees helped deliver record profits through initiatives like opening new stores, cutting costs, boosting productivity, and increasing market share in digital products. Looking ahead, Best Buy aims to increase revenue and earnings through strategies like opening more stores, improving operating margins, gaining a larger share of customers' entertainment spending, and developing employee leadership.
This document is Barnes & Noble's 2005 Annual Report. It includes a letter to shareholders highlighting the company's financial results for 2005 including 6% growth in store sales and 2.9% growth in comparable store sales. It discusses the company's expansion including opening 27 new stores and completing construction of a new distribution center. It also notes the company's strong financial position with no debt and $373 million in cash at the end of 2005.
This document provides selected consolidated financial data for Barnes & Noble, Inc. for fiscal years 2001 through 1997. In fiscal 2001, total sales were $4.87 billion, with Barnes & Noble store sales of $3.36 billion and GameStop store sales of $1.12 billion. Gross profit was $1.31 billion and selling and administrative expenses were $904.28 million.
United Stationers focuses on six value drivers to achieve profitable growth:
1) Deliver profitable sales growth through product initiatives, marketing capabilities, and new channels
2) Drive out waste through cost reduction programs like WOW 2 to lower expenses
3) Expand private brand sales which offer higher margins for United and customers
4) Optimize assets like inventory and accounts payable to improve cash flow
5) Unlock value from acquisitions like ORS Nasco to enter new markets
6) Enhance marketing capabilities with technology improvements to catalogs and customer tools
United made progress in 2007 on these drivers through category growth, cost savings, higher private brand sales, and the ORS Nasco acquisition, helping deliver
1) Whole Foods Market saw sales growth of 24% in 2008 to $8 billion but comparable store sales grew only 5% as challenges from the deteriorating economy hurt sales. 2) Actions taken to address the economic challenges included cost cuts, reducing new store openings, and raising $425 million through an investment in preferred stock. 3) Looking ahead, Whole Foods aims to improve performance in acquired Wild Oats stores, lower average store size, and differentiate its product selection.
Best Buy had an extremely successful fiscal year 1999, with record revenues of over $10 billion, earnings of $224 million (a 138% increase over 1998), and a market capitalization exceeding $10 billion. Best Buy opened 28 new stores, entered the New England market, and saw a 13.5% increase in comparable store sales. Looking ahead, Best Buy plans to open approximately 45 new stores in fiscal 2000 as it aggressively expands its national presence.
- Best Buy reported first quarter net earnings of $192 million, down 18% from the previous year, with diluted EPS of $0.39.
- Revenue increased 14% to $7.9 billion due to new store openings and a 3% increase in comparable store sales.
- Gross profit margin declined 150 basis points to 23.9% due to a shift toward lower margin products and the acquisition of a Chinese business.
- Best Buy updated its fiscal year EPS guidance to $2.95 to $3.15, reflecting an expected ongoing shift toward lower margin products.
This document provides an overview of SUPERVALU's fiscal year 2003 performance and outlook for fiscal year 2004. Some key points:
1) In fiscal year 2003, SUPERVALU reported sales of $19.2 billion and net earnings of $257 million, though it did not meet all of its goals due to economic pressures.
2) The company made progress on key initiatives like adding new retail stores and implementing cost savings programs in distribution.
3) The outlook for fiscal year 2004 forecasts earnings per share between $2.00-$2.15, based on plans like opening new stores and a slowly recovering economy.
Best Buy successfully met many challenges in fiscal 2003, including executive succession, a slowdown in consumer spending, and increased competition in certain product categories. Employees helped deliver record profits through initiatives like opening new stores, cutting costs, boosting productivity, and increasing market share in digital products. Looking ahead, Best Buy aims to increase revenue and earnings through strategies like opening more stores, improving operating margins, gaining a larger share of customers' entertainment spending, and developing employee leadership.
This document is Barnes & Noble's 2005 Annual Report. It includes a letter to shareholders highlighting the company's financial results for 2005 including 6% growth in store sales and 2.9% growth in comparable store sales. It discusses the company's expansion including opening 27 new stores and completing construction of a new distribution center. It also notes the company's strong financial position with no debt and $373 million in cash at the end of 2005.
This document provides selected consolidated financial data for Barnes & Noble, Inc. for fiscal years 2001 through 1997. In fiscal 2001, total sales were $4.87 billion, with Barnes & Noble store sales of $3.36 billion and GameStop store sales of $1.12 billion. Gross profit was $1.31 billion and selling and administrative expenses were $904.28 million.
United Stationers focuses on six value drivers to achieve profitable growth:
1) Deliver profitable sales growth through product initiatives, marketing capabilities, and new channels
2) Drive out waste through cost reduction programs like WOW 2 to lower expenses
3) Expand private brand sales which offer higher margins for United and customers
4) Optimize assets like inventory and accounts payable to improve cash flow
5) Unlock value from acquisitions like ORS Nasco to enter new markets
6) Enhance marketing capabilities with technology improvements to catalogs and customer tools
United made progress in 2007 on these drivers through category growth, cost savings, higher private brand sales, and the ORS Nasco acquisition, helping deliver
1) Whole Foods Market saw sales growth of 24% in 2008 to $8 billion but comparable store sales grew only 5% as challenges from the deteriorating economy hurt sales. 2) Actions taken to address the economic challenges included cost cuts, reducing new store openings, and raising $425 million through an investment in preferred stock. 3) Looking ahead, Whole Foods aims to improve performance in acquired Wild Oats stores, lower average store size, and differentiate its product selection.
Best Buy had an extremely successful fiscal year 1999, with record revenues of over $10 billion, earnings of $224 million (a 138% increase over 1998), and a market capitalization exceeding $10 billion. Best Buy opened 28 new stores, entered the New England market, and saw a 13.5% increase in comparable store sales. Looking ahead, Best Buy plans to open approximately 45 new stores in fiscal 2000 as it aggressively expands its national presence.
- Best Buy reported first quarter net earnings of $192 million, down 18% from the previous year, with diluted EPS of $0.39.
- Revenue increased 14% to $7.9 billion due to new store openings and a 3% increase in comparable store sales.
- Gross profit margin declined 150 basis points to 23.9% due to a shift toward lower margin products and the acquisition of a Chinese business.
- Best Buy updated its fiscal year EPS guidance to $2.95 to $3.15, reflecting an expected ongoing shift toward lower margin products.
This document provides an overview of SUPERVALU's fiscal year 2003 performance and outlook for fiscal year 2004. Some key points:
1) In fiscal year 2003, SUPERVALU reported sales of $19.2 billion and net earnings of $257 million, though it did not meet all of its goals due to economic pressures.
2) The company made progress on key initiatives like adding new retail stores and implementing cost savings programs in distribution.
3) The outlook for fiscal year 2004 forecasts earnings per share between $2.00-$2.15, based on plans like opening new stores and a slowly recovering economy.
circuit city stores 2008 Annual Report and Form 10-Kfinance22
- Circuit City is a leading specialty retailer of consumer electronics, home office products, and entertainment software. It operates stores in the US and Canada.
- In fiscal 2008, Circuit City implemented numerous changes that negatively impacted financial performance as part of a turnaround effort. The goal is to rebuild customer service and selling culture.
- Going forward, Circuit City will focus on growth strategies including winning in home entertainment, growing its services business, leveraging multi-channel retailing, and improving its real estate position.
- The document is an investor presentation from September 2017 that outlines the company's strategies and focus areas.
- The company has identified four focus areas to improve performance: evolving the customer experience, strengthening brand positioning, leveraging retail science, and sharpening financial principles.
- It is executing cost savings initiatives with a goal of $100-110 million in annual savings, having already achieved $30 million in the first year.
Kohl's operates over 500 department stores across 37 states and online. In 2003, net sales increased 12.7% to over $10 billion however net income decreased 8.1% due to issues with inventory levels, customer experience, and marketing. In 2004, Kohl's plans to open 95 new stores and expand existing categories through partnerships for beauty products and new brands. The company believes its focus on national brands, value, and convenience positions it for continued growth.
Lowe's experienced a challenging year in 2006 with sales growth slowing more quickly than expected. Comparable store sales grew 4% in the first half but declined 4.6% in the second half, resulting in flat comp sales for the year overall. Three factors contributed to the sales slowdown: 1) A mild 2006 hurricane season reduced rebuilding demand in Gulf Coast areas, 2) Deflation in lumber and plywood prices impacted sales, and 3) The housing market declined more sharply than expected, dampening home improvement spending. However, solid cost controls allowed Lowe's to limit the earnings per share decline to 2.5% despite missing sales targets. Lowe's remains focused on initiatives to gain market share through new store expansion and improving
Mohawk Industries is a leading global flooring manufacturer that produces carpet, rugs, ceramic tile, wood, stone, laminate, and other flooring products. In 2006, Mohawk saw sales growth of 19% to $7.9 billion despite challenges in the housing market, due to its recent acquisition of Unilin and price increases. Earnings per share grew 17% compared to 2005. Mohawk invested $166 million in capital expenditures to increase production capacity and enhance customer service. Going forward, Mohawk aims to continue expanding its product categories, customer markets, and global presence through strategic investments and organizational changes.
The Lowe's 1999 Annual Report summarizes the company's strong financial performance in fiscal year 1999. Some key highlights include sales increasing 19% to $15.9 billion, pretax earnings growing 38% to $1.087 billion, and earnings per share rising 33-34%. Lowe's is committed to further improving home improvement for customers by expanding into new markets, enhancing existing programs like installed sales and special orders, and adapting to changing demographics. Going forward, Lowe's aims to continue transforming and adapting to create new opportunities to better serve customers.
Evine investor presentation september 2017 finalevine2015
This document provides an investor presentation for Evine Live, Inc. It includes a safe harbor statement noting forward-looking statements are based on management expectations and are subject to uncertainties. It defines adjusted EBITDA as a non-GAAP measure excluding certain items to assess operating performance. The presentation provides an overview of the company, its leadership team, and reasons for investing including progress improving financial performance, paying down debt, converting to HD, and planned growth initiatives.
The document provides an overview of Libbey Inc.'s investor day presentation. It cautions that statements made involve forward-looking assumptions and risks. Non-GAAP financial measures are used and reconciliations can be found in the appendix or previous filings. The agenda outlines presentations on strategy, new products, e-commerce, operations excellence, regional overviews, and financial targets through 2021. It aims to demonstrate how the new management team is shaping Libbey's future and executing its Creating Momentum strategy to address challenges facing the industry.
- Nike reported strong financial results for Q2 2008, with net revenue up 14% to $4.3 billion and EPS growing 11% to $0.71 per share.
- Key drivers of growth included strong performance in emerging markets like China and Russia and momentum in running and training categories.
- Futures orders were up over 13% globally on a reported basis and 10% excluding currency changes, indicating continued revenue growth.
- Margins expanded as pricing, closeout management, and growth in high-margin businesses like subsidiaries outweighed currency impacts.
Home Depot was founded in 1978 and initially focused on the do-it-yourself home improvement market. By 1985, Home Depot had grown to 50 stores across 15 markets. However, from 1983-1985 Home Depot experienced negative cash flow from operations and increasing inventory levels due to its aggressive expansion strategy. While sales per store remained steady, earnings per store and employee declined significantly during this period. Given constraints on its stock price and debt covenants, Home Depot needed to improve operating performance and consider changes to its growth strategy.
Mattel experienced significant changes in 2000 including new leadership and senior management. The company refocused on its core toy business, sold The Learning Company, and forged partnerships in the interactive space. Worldwide sales increased for major brands like Barbie and Fisher-Price. Mattel announced a financial plan to reduce costs by $200 million over three years. Going forward, Mattel will focus on strengthening brands globally, executing the cost savings plan, improving supply chain performance, and developing employees.
The document is Wal-Mart's 2005 annual report. It discusses Wal-Mart's record financial results for fiscal year 2005, including record sales and earnings of over $285 billion in revenues and $10 billion in net income. It also discusses Wal-Mart's plans for continued growth, including opening approximately 530 new stores in the coming year across the US and internationally. The annual report emphasizes Wal-Mart's focus on its employees and career opportunities for associates, and it expresses optimism about Wal-Mart's future prospects for growth.
United Stationers is focusing on six value drivers to achieve long-term financial goals: 1) Delivering profitable sales growth by leveraging product initiatives and serving new channels like e-tailers. 2) Driving out $100 million in costs over 5 years through waste elimination initiatives. 3) Expanding their private brand offerings which now generate 11% of sales. 4) Optimizing assets by improving working capital efficiency and leveraging IT infrastructure investments. 5) Unlocking value from their Sweet Paper acquisition by expanding product offerings and removing costs. 6) Using technology to enhance marketing capabilities and customer relationships.
This annual report summarizes the company's fiscal year 2004 performance and goals for fiscal year 2005. In fiscal year 2004, the company achieved 17% revenue growth to $24.5 billion by opening new stores and increasing comparable store sales by 7.1%. Earnings from continuing operations increased 29% through higher revenue and operating income. For fiscal year 2005, the company aims to grow revenue 11-13% by opening new stores and earn comparable sales gains, while increasing diluted EPS 15-20%. The company is also transforming its business through a customer centricity initiative to improve customer service and engagement.
- The document is the 2008 annual report and letter to stakeholders of Whole Foods Market.
- In 2008, Whole Foods saw sales growth of 24% but comparable store sales growth slowed to 5% due to economic challenges. They opened 20 new stores.
- Actions were taken to reduce costs and slow growth, including job cuts, reducing new store openings, and suspending the dividend. Additional funding was obtained through the sale of preferred stock.
- The economic challenges prompted a more value-oriented approach and efforts to differentiate Whole Foods' product selection.
Winn-Dixie is transforming its business through a multi-year remodel program, neighborhood marketing initiatives, and revamped private label brands. The company stabilized financially through bankruptcy and now aims to rebuild trust through a fresh approach. Key elements include remodeling nearly half of stores by 2010 to increase sales, tailoring merchandising and promotions to local neighborhoods, and redesigning private label brands to offer better quality and value. Winn-Dixie communicates these changes internally to employees and externally through circulars, store signage, and branded delivery trucks.
Winn-Dixie is executing a strategic plan to rebuild trust in its brand through fresh thinking. The plan involves stabilizing the business financially, remodeling stores to improve the customer experience, tailoring neighborhood marketing strategies, revamping its private label brands, and communicating its transformation internally and externally. The multi-year effort aims to position Winn-Dixie for future growth by modernizing stores, increasing sales of profitable products, and aligning with local communities.
The document is The Home Depot's 2002 Annual Report. It provides the following key information:
1) The Home Depot is the world's largest home improvement retailer with fiscal 2002 sales of $58.2 billion. It operates various store formats across the US, Canada, and Mexico.
2) In 2002, The Home Depot achieved net earnings of $3.7 billion, earnings per share growth of 21%, and a return on invested capital of 18.8%. It ended the year with $2.3 billion in cash after repurchasing $2 billion in stock.
3) The Home Depot made significant investments in 2002 to transform the business through technology upgrades, merchandising
1) Mattel faced challenges in 2001 due to a slowing global economy, terrorist attacks hurting US consumer confidence, and retailers canceling orders. However, Mattel achieved 3% worldwide revenue growth and record levels.
2) Mattel gained market share around the world and in the US across multiple toy categories. International sales grew 10% while the US declined 1%.
3) Robert Eckert outlines Mattel's priorities for 2002 - strengthening core brands, delivering $200M in cost savings, improving supply chain performance, and developing employees. Mattel aims to optimize its business and become "the world's premier toy brands."
The annual report summarizes Whole Foods Market's financial performance and operations in 2006. It discusses record sales and profit growth, new store openings, commitment to stakeholders, and goals for continued expansion. Key highlights include double-digit comparable store sales growth, increased market share, and a plan to double sales and square footage by 2010 while maintaining a focus on core values.
The annual report summarizes Whole Foods Market's financial performance and operations in 2006. It discusses record sales and profit growth, new store openings, commitment to stakeholders, and goals for continued expansion. Key highlights include double-digit comparable store sales growth, increased market share, and a plan to double sales and square footage by 2010 while maintaining a focus on core values.
Masco Corporation's 2007 annual report discusses the company's financial results for 2007. Key points include:
- Net sales declined 7% to $11.8 billion in 2007 compared to $12.7 billion in 2006.
- Income from continuing operations was $397 million or $1.06 per share, down from $478 million or $1.20 per share in 2006.
- The company returned over $1 billion to shareholders through share repurchases and dividends.
- Cash flow from operations was approximately $980 million.
circuit city stores 2008 Annual Report and Form 10-Kfinance22
- Circuit City is a leading specialty retailer of consumer electronics, home office products, and entertainment software. It operates stores in the US and Canada.
- In fiscal 2008, Circuit City implemented numerous changes that negatively impacted financial performance as part of a turnaround effort. The goal is to rebuild customer service and selling culture.
- Going forward, Circuit City will focus on growth strategies including winning in home entertainment, growing its services business, leveraging multi-channel retailing, and improving its real estate position.
- The document is an investor presentation from September 2017 that outlines the company's strategies and focus areas.
- The company has identified four focus areas to improve performance: evolving the customer experience, strengthening brand positioning, leveraging retail science, and sharpening financial principles.
- It is executing cost savings initiatives with a goal of $100-110 million in annual savings, having already achieved $30 million in the first year.
Kohl's operates over 500 department stores across 37 states and online. In 2003, net sales increased 12.7% to over $10 billion however net income decreased 8.1% due to issues with inventory levels, customer experience, and marketing. In 2004, Kohl's plans to open 95 new stores and expand existing categories through partnerships for beauty products and new brands. The company believes its focus on national brands, value, and convenience positions it for continued growth.
Lowe's experienced a challenging year in 2006 with sales growth slowing more quickly than expected. Comparable store sales grew 4% in the first half but declined 4.6% in the second half, resulting in flat comp sales for the year overall. Three factors contributed to the sales slowdown: 1) A mild 2006 hurricane season reduced rebuilding demand in Gulf Coast areas, 2) Deflation in lumber and plywood prices impacted sales, and 3) The housing market declined more sharply than expected, dampening home improvement spending. However, solid cost controls allowed Lowe's to limit the earnings per share decline to 2.5% despite missing sales targets. Lowe's remains focused on initiatives to gain market share through new store expansion and improving
Mohawk Industries is a leading global flooring manufacturer that produces carpet, rugs, ceramic tile, wood, stone, laminate, and other flooring products. In 2006, Mohawk saw sales growth of 19% to $7.9 billion despite challenges in the housing market, due to its recent acquisition of Unilin and price increases. Earnings per share grew 17% compared to 2005. Mohawk invested $166 million in capital expenditures to increase production capacity and enhance customer service. Going forward, Mohawk aims to continue expanding its product categories, customer markets, and global presence through strategic investments and organizational changes.
The Lowe's 1999 Annual Report summarizes the company's strong financial performance in fiscal year 1999. Some key highlights include sales increasing 19% to $15.9 billion, pretax earnings growing 38% to $1.087 billion, and earnings per share rising 33-34%. Lowe's is committed to further improving home improvement for customers by expanding into new markets, enhancing existing programs like installed sales and special orders, and adapting to changing demographics. Going forward, Lowe's aims to continue transforming and adapting to create new opportunities to better serve customers.
Evine investor presentation september 2017 finalevine2015
This document provides an investor presentation for Evine Live, Inc. It includes a safe harbor statement noting forward-looking statements are based on management expectations and are subject to uncertainties. It defines adjusted EBITDA as a non-GAAP measure excluding certain items to assess operating performance. The presentation provides an overview of the company, its leadership team, and reasons for investing including progress improving financial performance, paying down debt, converting to HD, and planned growth initiatives.
The document provides an overview of Libbey Inc.'s investor day presentation. It cautions that statements made involve forward-looking assumptions and risks. Non-GAAP financial measures are used and reconciliations can be found in the appendix or previous filings. The agenda outlines presentations on strategy, new products, e-commerce, operations excellence, regional overviews, and financial targets through 2021. It aims to demonstrate how the new management team is shaping Libbey's future and executing its Creating Momentum strategy to address challenges facing the industry.
- Nike reported strong financial results for Q2 2008, with net revenue up 14% to $4.3 billion and EPS growing 11% to $0.71 per share.
- Key drivers of growth included strong performance in emerging markets like China and Russia and momentum in running and training categories.
- Futures orders were up over 13% globally on a reported basis and 10% excluding currency changes, indicating continued revenue growth.
- Margins expanded as pricing, closeout management, and growth in high-margin businesses like subsidiaries outweighed currency impacts.
Home Depot was founded in 1978 and initially focused on the do-it-yourself home improvement market. By 1985, Home Depot had grown to 50 stores across 15 markets. However, from 1983-1985 Home Depot experienced negative cash flow from operations and increasing inventory levels due to its aggressive expansion strategy. While sales per store remained steady, earnings per store and employee declined significantly during this period. Given constraints on its stock price and debt covenants, Home Depot needed to improve operating performance and consider changes to its growth strategy.
Mattel experienced significant changes in 2000 including new leadership and senior management. The company refocused on its core toy business, sold The Learning Company, and forged partnerships in the interactive space. Worldwide sales increased for major brands like Barbie and Fisher-Price. Mattel announced a financial plan to reduce costs by $200 million over three years. Going forward, Mattel will focus on strengthening brands globally, executing the cost savings plan, improving supply chain performance, and developing employees.
The document is Wal-Mart's 2005 annual report. It discusses Wal-Mart's record financial results for fiscal year 2005, including record sales and earnings of over $285 billion in revenues and $10 billion in net income. It also discusses Wal-Mart's plans for continued growth, including opening approximately 530 new stores in the coming year across the US and internationally. The annual report emphasizes Wal-Mart's focus on its employees and career opportunities for associates, and it expresses optimism about Wal-Mart's future prospects for growth.
United Stationers is focusing on six value drivers to achieve long-term financial goals: 1) Delivering profitable sales growth by leveraging product initiatives and serving new channels like e-tailers. 2) Driving out $100 million in costs over 5 years through waste elimination initiatives. 3) Expanding their private brand offerings which now generate 11% of sales. 4) Optimizing assets by improving working capital efficiency and leveraging IT infrastructure investments. 5) Unlocking value from their Sweet Paper acquisition by expanding product offerings and removing costs. 6) Using technology to enhance marketing capabilities and customer relationships.
This annual report summarizes the company's fiscal year 2004 performance and goals for fiscal year 2005. In fiscal year 2004, the company achieved 17% revenue growth to $24.5 billion by opening new stores and increasing comparable store sales by 7.1%. Earnings from continuing operations increased 29% through higher revenue and operating income. For fiscal year 2005, the company aims to grow revenue 11-13% by opening new stores and earn comparable sales gains, while increasing diluted EPS 15-20%. The company is also transforming its business through a customer centricity initiative to improve customer service and engagement.
- The document is the 2008 annual report and letter to stakeholders of Whole Foods Market.
- In 2008, Whole Foods saw sales growth of 24% but comparable store sales growth slowed to 5% due to economic challenges. They opened 20 new stores.
- Actions were taken to reduce costs and slow growth, including job cuts, reducing new store openings, and suspending the dividend. Additional funding was obtained through the sale of preferred stock.
- The economic challenges prompted a more value-oriented approach and efforts to differentiate Whole Foods' product selection.
Winn-Dixie is transforming its business through a multi-year remodel program, neighborhood marketing initiatives, and revamped private label brands. The company stabilized financially through bankruptcy and now aims to rebuild trust through a fresh approach. Key elements include remodeling nearly half of stores by 2010 to increase sales, tailoring merchandising and promotions to local neighborhoods, and redesigning private label brands to offer better quality and value. Winn-Dixie communicates these changes internally to employees and externally through circulars, store signage, and branded delivery trucks.
Winn-Dixie is executing a strategic plan to rebuild trust in its brand through fresh thinking. The plan involves stabilizing the business financially, remodeling stores to improve the customer experience, tailoring neighborhood marketing strategies, revamping its private label brands, and communicating its transformation internally and externally. The multi-year effort aims to position Winn-Dixie for future growth by modernizing stores, increasing sales of profitable products, and aligning with local communities.
The document is The Home Depot's 2002 Annual Report. It provides the following key information:
1) The Home Depot is the world's largest home improvement retailer with fiscal 2002 sales of $58.2 billion. It operates various store formats across the US, Canada, and Mexico.
2) In 2002, The Home Depot achieved net earnings of $3.7 billion, earnings per share growth of 21%, and a return on invested capital of 18.8%. It ended the year with $2.3 billion in cash after repurchasing $2 billion in stock.
3) The Home Depot made significant investments in 2002 to transform the business through technology upgrades, merchandising
1) Mattel faced challenges in 2001 due to a slowing global economy, terrorist attacks hurting US consumer confidence, and retailers canceling orders. However, Mattel achieved 3% worldwide revenue growth and record levels.
2) Mattel gained market share around the world and in the US across multiple toy categories. International sales grew 10% while the US declined 1%.
3) Robert Eckert outlines Mattel's priorities for 2002 - strengthening core brands, delivering $200M in cost savings, improving supply chain performance, and developing employees. Mattel aims to optimize its business and become "the world's premier toy brands."
The annual report summarizes Whole Foods Market's financial performance and operations in 2006. It discusses record sales and profit growth, new store openings, commitment to stakeholders, and goals for continued expansion. Key highlights include double-digit comparable store sales growth, increased market share, and a plan to double sales and square footage by 2010 while maintaining a focus on core values.
The annual report summarizes Whole Foods Market's financial performance and operations in 2006. It discusses record sales and profit growth, new store openings, commitment to stakeholders, and goals for continued expansion. Key highlights include double-digit comparable store sales growth, increased market share, and a plan to double sales and square footage by 2010 while maintaining a focus on core values.
Masco Corporation's 2007 annual report discusses the company's financial results for 2007. Key points include:
- Net sales declined 7% to $11.8 billion in 2007 compared to $12.7 billion in 2006.
- Income from continuing operations was $397 million or $1.06 per share, down from $478 million or $1.20 per share in 2006.
- The company returned over $1 billion to shareholders through share repurchases and dividends.
- Cash flow from operations was approximately $980 million.
This document provides a summary of Whirlpool Corporation's 2004 annual report. It discusses Whirlpool focusing its efforts on creating unmatched customer loyalty for its brands worldwide. It achieved solid financial results in 2004 despite rising costs, with record revenues of $13.2 billion. Whirlpool's strategy focuses on customer loyalty, innovation, and strong trade partner relationships to differentiate itself and drive global growth.
This document provides an annual report for Dell Computer Corporation for the 1996 fiscal year. It summarizes the company's strong financial performance, with record revenues of $5.3 billion and net income increasing 82% to $272 million. It attributes this success to Dell's direct sales model and focus on customer satisfaction, relationships, and tailored service. The report also outlines Dell's priorities and investments in areas like new products, geographic expansion, infrastructure, and personnel.
Ball Corporation is a leading provider of metal and plastic packaging for beverages and foods. In 2001, Ball reported a net loss of $1.85 per share due to business consolidation charges, but excluding these charges earnings were $1.78 per share. Ball took actions to improve its packaging operations in China and North America to better position them for the future. Ball also expects solid performance in 2002 and beyond as it builds on its strengths of quality, customer relationships, and creative employees.
This document is Ball Corporation's 2001 annual report. It provides an overview of Ball Corporation, including that it is a leading provider of metal and plastic packaging for beverages and foods, as well as aerospace technologies. It discusses Ball's vision, mission, and strategy. The report notes challenges in 2001 from rising costs but performance was still slightly below 2000 levels when excluding charges. It describes actions taken to improve Ball's packaging and aerospace operations and position them for future growth.
The document summarizes the record financial results of USG Corporation in 1999. It discusses how the power of their strategies and brand produced record sales, profits, and stock performance. It also outlines their five strategic initiatives - building for profitable growth, leading in innovation, expanding distribution, serving customers best, and building their brands - and how these strategies will drive continued success.
1) Whole Foods Market saw sales growth of 24% in 2008 to $8 billion but comparable store sales increased only 5% as challenges from the deteriorating economy hurt sales. 2) Actions taken to address the economic challenges included cost cuts, reducing new store openings, and raising $425 million from an investor. 3) Looking ahead, the company expects sales to stabilize in 2009 driven by improvements in acquired Wild Oats stores and continued focus on value, quality, and differentiation.
1) Whole Foods Market saw sales growth of 24% in 2008 to $8 billion but comparable store sales grew only 5% as challenges from the deteriorating economy hurt sales in the second half of the year.
2) Actions taken to prepare for a prolonged downturn included job cuts, fewer new store openings, capital expenditure cuts, dividend suspension, and raising $425 million from an investor.
3) While 2008 was challenging, the company believes its focus on quality, value, animal welfare and the environment will allow it to retain leadership in natural and organic foods retailing over the long term.
1) Whole Foods Market saw sales growth of 24% in 2008 to $8 billion but comparable store sales increased only 5% as challenges from the deteriorating economy hurt sales. 2) Actions taken to address the economic challenges included cost cuts, reducing new store openings, and raising $425 million from an investor. 3) Looking ahead, the company expects sales to stabilize in 2009 driven by improvements in acquired Wild Oats stores and continued focus on value, quality, and differentiation.
- The document is Whole Foods Market's 2008 annual report letter to stakeholders. It discusses the challenges of 2008 due to economic deterioration but reports overall sales growth of 24% and comparable store sales growth of 5%.
- Key initiatives in 2008 included integrating Wild Oats stores, opening 20 new stores, and implementing cost containment measures like job cuts to prepare for economic challenges.
- Moving forward, Whole Foods plans to focus on value and cost containment while still pursuing growth, aiming to open 15 new stores in 2009.
This annual report summarizes the company's performance in 2008. It discusses challenges faced due to economic deterioration, but also growth through new store openings and sales increasing 24% to $8 billion. Cost-cutting measures were implemented and an investment was received to ensure liquidity during difficult times. The company remains committed to its core values like high quality, customer satisfaction, and social/environmental responsibility.
This annual report summarizes the company's performance in 2008. It discusses challenges faced due to economic deterioration, but also growth through new store openings and sales increasing 24% to $8 billion. Cost-cutting measures were implemented and an investment was received to ensure liquidity during difficult times. The company remains committed to its core values like high quality, customer satisfaction, and social/environmental responsibility. Future outlook expects stabilization and growth through improvements and increased value perception, but comparable sales growth for 2009 was not predicted due to economic uncertainty.
Return on total capital for the trailing 12 months ended June 28, 2008 was 20.8%. Net earnings for the 4 fiscal quarters spanning September 29, 2007 to June 28, 2008 totaled $1,104,607. The average total capital over the last 5 quarters, consisting of long-term debt, short-term debt, and equity, was $5,303,913. Return on capital was calculated by taking net earnings for the 12 month period and dividing by the average total capital.
This document is Sysco Corporation's 2000 annual report. It summarizes that fiscal 2000 was Sysco's 30th anniversary as a public company and marked record sales of $19.3 billion, up 11% from the previous fiscal year. Key drivers of growth were increased sales to customers served by Sysco marketing associates and continued growth of Sysco Brand sales. The report discusses Sysco's strategy of pursuing both acquisitions and internal expansion to continue driving future success through offering customers a breadth of products and superior service.
1) SYSCO reported strong sales and earnings growth in fiscal year 2001, with sales topping $20 billion for the first time.
2) Net earnings increased over 30% compared to the previous year, and return on shareholders' equity reached 31%.
3) Growth was driven by acquisitions, internal expansion, and a focus on customer relationships through initiatives like C.A.R.E.S.
SYSCO is a food distribution company that supplies over 415,000 customers like restaurants, hospitals, and schools. In fiscal year 2002, SYSCO reported $23.35 billion in sales, a 7% increase from the previous year. Net earnings increased 14% to $679.78 million compared to fiscal year 2001. SYSCO has over 46,800 employees and operates from 142 locations across North America, helping their customers succeed by providing food and related products and services.
This annual report summarizes Sysco Corporation's financial performance for fiscal year 2003. Key highlights include:
- Sales increased 12% to $26.14 billion and net earnings increased 14% to $778.28 million.
- Diluted earnings per share increased 17% to $1.18.
- Return on average shareholders' equity was 36%.
- The company distributed products from 145 locations across North America to over 420,000 customer locations.
This document provides an annual report for Sysco Corporation for the fiscal year ending July 3, 2004. It includes financial highlights showing sales increased 12% to $29.3 billion and net earnings increased 17% to $907 million. It discusses challenges in the year from high product cost inflation of 6.3% and fuel costs. It outlines Sysco's focus on growing profitable customer businesses and improving customer relationships. It describes Sysco's national supply chain initiative including new regional distribution centers to enhance service and reduce costs. In closing, it expresses confidence in addressing economic uncertainty through its employees, products/services, and financial resources.
The passage discusses the importance of summarization in an age of information overload. It notes that with the massive amounts of data available online, being able to quickly understand the key points of lengthy documents, articles, or reports is crucial. The ability to produce clear, concise summaries helps people filter through large amounts of information and identify what is most important or relevant to them.
- SYSCO achieved record sales of $37.5 billion and record net earnings of $1.1 billion in fiscal year 2008 despite challenging economic conditions.
- The company's focus on supply chain efficiency and helping customers succeed through business reviews allowed it to contain costs while growing market share.
- SYSCO continues to invest in its business, people, facilities, fleet and technology to support long-term growth while exploring alternative energy sources.
This document summarizes reconciling items for 2001 by quarter and fiscal year. It reports reorganization costs of $19.1 million in Q2 2001, $11.7 million in Q3 2001, and $10.6 million in Q4 2001 for workforce reductions and facility consolidations worldwide. Special items include a $19.4 million write-off in Q3 2001 and $3.5 million impairment charge in Q4 2001. The total net reconciling items after tax was $42.1 million for fiscal year 2001.
This document shows the reconciliation between GAAP and non-GAAP operating income for different regions and worldwide for 2001. For each quarter and the full year, it provides the operating income under GAAP and non-GAAP measurements, as well as the reconciling items between the two. On a non-GAAP basis, operating income margins ranged from -1.25% to 1.23% by region for the full year.
This document provides a reconciliation of GAAP to non-GAAP financial metrics for 2001. For each quarter and full year, it shows gross sales, gross profit, operating expenses, operating income, net income, and diluted EPS under GAAP and non-GAAP after adjusting for reconciling items. The reconciling items reduced operating expenses and increased operating income, net income, and diluted EPS for the non-GAAP results compared to GAAP.
This document summarizes reconciling items for 2002 by quarter and fiscal year total. It includes reorganization costs, other major program costs, gains/losses on securities sales, and tax effects. Total net reorganization and other major program costs for the fiscal year were $116.6 million. A $280.9 million cumulative effect of a new accounting standard adoption was also recorded. The total net impact of reconciling items for the fiscal year was $350.2 million.
The document shows the reconciliation between GAAP and non-GAAP operating income for North America, Europe, Asia-Pacific, Latin America, and worldwide total for Q1 2002 through FY 2002. It provides the operating income under GAAP and non-GAAP measurements, as well as the reconciling items and non-GAAP operating income as a percentage of revenue for each region and time period.
This document provides a reconciliation of net income and earnings per share (EPS) between Generally Accepted Accounting Principles (GAAP) and non-GAAP measures for 4 quarters (Q1 2002 - Q4 2002) and the full fiscal year 2002 for an unnamed company. It shows that reconciling items reduced operating expenses and increased operating income, net income, and EPS under the non-GAAP measures compared to the GAAP measures.
This document summarizes reconciling items for 2003, including reorganization costs and other major program costs by quarter. Total reorganization costs for the year were $21.6 million. Other costs included in selling, general and administrative expenses were $23.3 million and costs of sales were $0.5 million. Pre-tax items totaled $45.4 million for the year. A favorable tax resolution of $70.5 million occurred in Q3 03. The total net effect was a $39.6 million benefit.
This document shows the operating income for different regions and worldwide both according to GAAP (Generally Accepted Accounting Principles) standards and on a non-GAAP basis for Q1 2003, Q2 2003, Q3 2003, Q4 2003 and FY 2003. It provides the figures in US dollars and also shows the operating income as a percentage of revenue. The non-GAAP operating income is higher due to reconciling items which are additional costs excluded from the non-GAAP calculation.
This document presents a bridge between GAAP and non-GAAP financial results for a company for 2003. It shows GAAP and non-GAAP results for net income, earnings per share, gross profit, operating expenses, operating income, and sales on a quarterly and full year basis. Reconciling items between GAAP and non-GAAP results include adjustments to operating expenses that increased non-GAAP operating income and net income compared to GAAP.
This document summarizes reconciling items for 2004 by quarter and fiscal year. It includes reorganization costs, other major program costs, foreign exchange gains and losses, and tax effects. Reorganization costs were credits in Q3 and Q4 2004 due to lower than expected facility consolidation costs. Foreign exchange gains stemmed from a currency contract for an acquisition. A favorable tax resolution in Q3 and Q4 2004 reversed previously accrued federal and state income taxes. The total net tax effect for the fiscal year was a credit of $58.8 million.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...beulahfernandes8
The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
1. Extending our
Leadership
Best Buy Co., Inc.
Fiscal 2002 Annual Report
2. Extending our Leadership
Our Vision: Making Life Fun and Easy
Best Buy Co., Inc. (NYSE: BBY) is North America’s No.1 specialty retailer.
We currently operate Best Buy, the top U.S. retailer of technology and entertainment
products and services with nearly 500 stores; Future Shop, the leading Canadian
retailer of technology and entertainment products and services with 95 stores;
Magnolia Hi-Fi, a 13-store retailer of top-of-the-line consumer electronics in the
Pacific Northwest; Media Play, a retailer of family entertainment software products
with 76 stores; On Cue and Sam Goody, which sell movies, music and gaming
products and services for young adults through approximately 850 stores located
in small market strip centers and urban malls; and Suncoast, a mall-based retailer
of movies with approximately 400 stores.
Key wins from fiscal 2002:
• Revenues grew 28 percent to $19.6 billion.
• Earnings increased more than 40 percent to $570 million.
• Operating margins rose 0.90 percentage points to 4.8 percent
of revenues.
• Comparable store sales gained 1.9 percent.
• We acquired Future Shop, Canada’s leading specialty retailer.
• We opened 62 Best Buy stores, including our entry into Seattle.
• We met our operating goals for Musicland’s first full year of business.
Goals for fiscal 2003:
• Boost revenues and earnings by 17 to 21 percent.
• Increase comparable store sales by 3 to 4 percent at our
U.S. stores and 7 to 9 percent at our Canadian stores.
• Open more than 100 stores across our various brands.
• Continue to improve our retail execution and build on our
No.1 relationship with the customer.
• Leverage capabilities and competencies across
the company.
3. Table of Contents
2 Letter to Shareholders
6 Best Buy
9 Musicland
12 Future Shop
14 Magnolia Hi-Fi
16 Company Snapshot
18 Ten-Year Financial Highlights
20 Management’s Discussion
and Analysis
34 Consolidated Financial Statements
56 Glossary
58 Directors and Officers
59 Shareholder Information
60 Store Counts
4. Letter to Shareholders
Extending our Leadership in Retailing
In the past year, for example, we increased
revenues by 28 percent to $19.6 billion,
driven by the opening of 62 new Best Buy
stores, the inclusion of revenues from acquired
Leadership in retailing often is defined as
businesses and a comparable store sales gain
having the greatest market share. By that
at Best Buy stores of 1.9 percent. We achieved
definition, Best Buy is the leading specialty
those results amid a national recession, the
retailer in North America, generating
war on terrorism and weakness in sales of
revenues in fiscal 2002 of nearly $20 billion.
two major products, desktop computers and
As a result, we have captured a 14-percent
prerecorded music.
U.S. market share of the consumer electronics,
home office and entertainment software
Thanks to the continuing strength of our
categories. While we continue to develop
employees’ retail execution and customer
plans to increase our market share, we
preference for our store format, our sales
already lead the United States in sales of
productivity at Best Buy stores reached $830
consumer electronics, computers, music and
per square foot.
movies, and we rank third in sales of major
appliances. Through our November 2001 Despite a volatile economy, we kept Best Buy
acquisition of Future Shop, we have expanded stores’ inventory turns steady at the retail
our leadership position in speciality retailing industry-leading level of 7.5 times, while
to all of North America as well. enhancing our in-stock position.
We compare our performance with that of We achieved these results by sharpening our
the nation’s best-in-class retailers, including supply chain management, demand forecasting,
Bed Bath & Beyond, Home Depot, Kohls, logistics, transportation and pricing systems.
Target, Wal-Mart and Walgreens. Last year, Our net earnings grew to $570 million,
we had one of the best performances in that reflecting increased revenues, a richer
group in terms of revenue growth, sales product assortment and controlled expenses.
productivity, inventory turns, earnings growth Our earnings growth rate exceeded
and return on equity. 40 percent last year.
These results translated into a 26-percent
return on average equity.
2
5. 32.6%
27.6% 27.1%
26.3%
17.0%
Living our Values
To explain how we lead, I would like to 1998 1999 2000 2001 2002
address our core values, which have driven
Return on Average
our culture of innovation. Throughout our
Common Equity
36-year history, we have been guided by this
Our return on equity compares favorably
core set of values. We place importance on
with that of other national retailers.
having fun while being the best. We seek
to learn from challenge and change. We
understand the need to act with respect, humil-
Our knowledge management systems allow
ity and integrity. We believe in unleashing the
our 90,000 employees to share information
power of our people.
about everything from car stereo installation
Because we strive for excellence and tips to selling techniques. Thanks to our
embrace change, we can do more than leadership in these key competitive areas, we
simply grow. We also foster innovation. That now set the benchmark for our industry in
is a prime reason why we have been able to financial strength as well, affording us the
establish and maintain our leadership in the flexibility to invest for future growth and to
retail industry. return fully 1.5 percent of our pretax earnings
to our communities.
Fostering Innovation
Examples of our innovation are many. The skill sets, processes and systems we have
Consider our demand forecasting systems, built – which we call our “structural capital” –
which enabled us to finish a robust holiday are important not only to the future success
selling season with strong in-stock levels. of Best Buy stores, but to the vitality of
Our advertising effectiveness systems help us our acquired businesses. The centerpiece of
maximize the efficiency of our marketing our strategy is a continued expansion of our
budget and predict with a higher degree Best Buy stores, including 60 new U.S. stores
of accuracy how our Sunday circular will per year for at least the next four years, as
impact sales the following week. Our supply well as comparable store sales gains. That
chain management enables us to plan for base serves as a strong foundation to the next
model transitions, to avoid markdowns and part of our strategy: namely, extending our
to launch new products as soon as they leadership into new spaces by leveraging our
become available. structural capital.
3
Best Buy Co., Inc.
6. Specifically, where might our
leadership take us in the future?
• New markets, including approximately
240 more Best Buy stores, as we fill out
our U.S. presence; up to 800 additional
small-market Sam Goody stores, which
serve a new, rural consumer; new stores in
Canada, as we launch the Best Buy brand
in that market and expand our Future Shop
position; and up to 130 more Magnolia
Hi-Fi stores for affluent consumers, building I announced this spring my intention to step
on our West Coast presence. aside as CEO effective in June 2002,
triggering a succession plan developed some
• New levels of sales productivity, particu-
time ago. I am proud to say that I have
larly at our Musicland stores, where we
developed a top-notch team of executives to
expect to sharpen our focus on entertain-
take the helm, including several Best Buy
ment for the young, fun consumer.
veterans. My confidence in them will enable
• New products and services for existing me to balance my life, pursue special interests
customers at all of our stores, as we take and spend time developing Best Buy’s future
advantage of the expanding digital leaders as well as working with management
product cycle. on long-range growth prospects. I intend to
stay active as Chairman of the Board of the
• New levels of financial performance,
company I founded, of which I remain our
including operating margin expansion at
single largest shareholder.
all of our stores.
I consider Best Buy to be my best investment.
• New countries, whether we enter through
In the last five years, our stock provided
acquisition or organic growth.
the highest total return to shareholders of
Ultimately, our goal is to extend our leadership all stocks in the S&P 500. Our goal is
to become the top specialty retailer in the world. to continue providing to shareholders top-
quartile performance, with revenues and
earnings growth of 17 to 21 percent annually.
4 Letter to Shareholders
7. I am truly excited about our many possibilities
because I know that our team, when faced
with a challenge, is inspired rather than
discouraged. Our company culture thrives on
growth, change and innovation. We know
the importance of remaining in lock step with
our customers to earn their continued loyalty
and to remain their retailer of choice.
My heartfelt thanks goes out to all of our
employees, for continuing to embrace new
challenges as our company expands; to our
board, for its guidance and direction as we
strive to extend our leadership into new spaces;
to our vendors, for their ongoing partnership;
and to our shareholders, for your continued
support of our company.
Richard M. Schulze
Founder, Chairman & CEO
5
8. Extending our Leadership
into New Technologies
We had a banner year We also have the opportunity to increase the
at Best Buy stores productivity of our existing stores. Our newest
store design, called Concept 5, facilitates
Despite a national recession, our sales for the
growth by showcasing the newest digital
fiscal year increased by 12 percent to $17.0
technologies. It offers improved placement of
billion, driven by new stores and comparable
products to encourage the sale of services
store sales gains of 1.9 percent. We boosted
and accessories along with each device. Its
our operating margin by 120 basis points
flexible architecture allows us to adjust easily
and increased our market share to 14 percent.
the space we allocate to each product
We maintained industry-leading inventory
category. The single-queue checkout and
turns at 7.5 times. We continued to excel in
convenience store reduce waiting time and
sales of digital products, which comprised
make it more fun. The transaction center lets
17 percent of sales last year, compared with
customers sit and have a relaxed discussion
12 percent the prior year. In addition, our
during more complex purchases. In fiscal
e-commerce site ranked third in the country,
2003 all our new stores will utilize this new
based on customer visits; nearly 40 percent of
design, and we expect to remodel 10 stores
customers shopping our stores said they had
using this design as well.
visited us online prior to their purchase.
In addition, we expect to boost store
While our performance in the past year was
productivity by enhancing our sales training,
strong, it is by no means the end of the story.
building customer loyalty, improving our
Our goal is not only to be a leader, but to
supply chain management and more closely
define what leadership means in retailing. To
synchronizing our e-commerce business with
achieve that, we must continue to improve
our stores to give customers access to us
and to grow.
wherever, whenever and however they want it.
Growing Organically
In the coming year, we plan to continue our
revenue growth by opening approximately
60 more stores, half of which will be in our
30,000-square-foot format and half in our
45,000-square-foot format. This year we plan
to enter five states and expand our metro-
politan New York presence, including our first
store in Manhattan.
6 Business Review: Best Buy
9. 21,599
19,010
16,205
14,017
12,694
1998 1999 2000 2001 2002
Retail Selling Space (Best Buy Stores) (in thousands of square feet)
We plan to continue opening approximately 60 stores per year. In fiscal 2003,
we expect to enter five states: Alaska, Idaho, Utah, West Virginia and Wyoming.
Best Buy Co., Inc. 7
10. We believe that we can modestly improve our
operating margins as we increase sales of
digital products and leverage our expenses
over our national franchise. Finally, we are
preparing to re-engineer our appliance busi-
ness, including enhancements to the customer
experience, which we expect to boost sales
and profitability in the next two years.
Expanding our Services
Another major opportunity for us is developing
deeper relationships with customers through Anticipating Challenges
growth in the services we offer to our customers.
In the fast-paced world of retailing, only those
Whether we are installing a digital television,
who anticipate and respond to challenges in
connecting a car DVD player, configuring a
the environment succeed. For example,
computer or delivering appliances, we already
in anticipation of continued price pressures
are known for offering services. We have
and competition from mass merchandisers, we
invested in this business for the past three
have expanded our assortment and invested
years in order to improve customer satisfaction.
in added employee training to support sales
of complex digital products and services.
We have begun to offer new types of services
We also are partnering with key stakeholders
as well. For example, we are the top retailer
in the entertainment business to explore a
of subscriptions to MSN, Microsoft’s Internet
competitive alternative for consumers who
service provider. We have seen early success
download entertainment software. In addition,
with other subscription-based models, such
we are partnering with our vendors to
as satellite radio. In the future, as consumers
increase our mutual profitability so that they
begin to embrace new delivery models for
can invest in the development of tomorrow’s
entertainment and information, and as the
products and services.
networked home arrives, we want our
customers to think of Best Buy.
With an experienced management team,
a culture that embraces change and the
Services, like accessories, are an integral part
desire to lead through innovation, we have
of the package of products and services we
much reason for optimism about the future
provide to customers. Together they provide an
of Best Buy.
excellent avenue for leveraging our greatest
asset: the customer relationships we have
created through our stores.
8 Business Review: Best Buy
11. Extending our Leadership
with New Customers
Diversifying the Product Mix
In its first full year of operation within Best Buy,
Musicland stores achieved their performance Sales of prerecorded music remained soft
goals. Expense reductions enabled the busi- during the year, reflecting file sharing, Internet
ness to post a modest operating profit, downloading and slower sales of top hits.
despite the national recession and a decline We are working on a strategy to reverse the
in mall traffic. trend, including enhancing our own Internet
entertainment site and exploring subscription-
One reason we acquired Musicland was to
based models. Yet sales of prerecorded music
attract a differentiated customer of technology
are expected to remain soft for the coming
and entertainment products, including more
year as well, so our emphasis at Musicland
young people and the rural consumer. The
stores – and at Best Buy stores -- will be on
convenience-based strategy also presents a
increasing sales of other entertainment
shopping alternative to Best Buy stores, which
software, particularly DVD movies and
offer a destination shopping experience. Our
video gaming.
intention was to transform the Musicland
business, improve the customer experience, Our first objective was to launch a new mix of
diversify the revenue mix and thereby boost products at our mall-based Sam Goody
sales productivity and profitability. We also stores, which sell entertainment products and
viewed the small-market stores as an attractive services to young, fun entertainment consumers.
growth opportunity. Today we operate 615 Sam Goody stores,
which average 4,800 square feet.
We doubled the assortment of DVD movies
and introduced video gaming, categories
which carry lower margins but are growing
at triple - digit rates. We also introduced
hardware products that play music and
movies, a natural extension of the product
mix. As a result, increased sales from these
categories offset expected declines in sales of
prerecorded music.
9
Business Review: Musicland
12. -6.1% -0.4% 0.3% 1.2%
-0.7% -3.1% -6.7% -6.8%
3%
0
We introduced video gaming
at most of our Sam Goody -3%
stores in fiscal 2002 as part of
our remerchandising strategy.
-6%
Q1 Q2 Q3 Q4
Musicland Comps vs. Mall Traffic
Comparable store sales at Musicland outperformed the
National Retail Traffic Index after we remerchandised
TM
10 Business Review: Musicland
Sam Goody stores in early fiscal 2002.
13. Testing a new mix of products at the small- We began to leverage those competencies at
market On Cue stores was our second Musicland in fiscal 2002 and expect to
objective for the fiscal year. These 6,000- continue that work in fiscal 2003. Leveraging
square-foot stores target rural entertainment company competencies is our primary goal
enthusiasts with movies, music and books. in fiscal 2003 at 400 Suncoast stores, a
The test included an expanded assortment of mall-based retailer of movies in a 2,400-
DVD movies and the introduction of video square-foot format, known for its high level
gaming, as well as a narrowed assortment of service, which attracts movie enthusiasts;
of books. Results were favorable, and we and 76 Media Play stores, a family-oriented,
expect to remerchandise all 230 of the big-box retailer of entertainment software and
small-market stores prior to the fiscal 2003 books in a 45,000-square-foot format.
holiday selling season.
For our fourth objective, we integrated all of
We also piloted a new identity for On Cue our staff functions with Best Buy stores and
stores, which are similar in size and product produced the savings that we had expected.
mix to Sam Goody stores, yet have low brand
Transforming the Stores
recognition. Results were very clear and very
Yet significant challenges remain if we are
positive. We found that stores opening with
to succeed in increasing our share of the
the name of Sam Goody had significantly
spending of our core entertainment customers.
higher sales than identical stores opening as
The next step after remerchandising our
On Cue. We now plan to change all of the
stores is to transform them, which will require
On Cue stores to the Sam Goody name by
additional investments.
the fall of 2002.
We believe that the small-market stores offer Our fiscal 2003 goals include:
a significant vehicle for growth. They offer • Continue diversifying the product mix,
sales as strong as that of our mall-based Sam reducing our reliance on prerecorded music.
Goody stores, combined with a significantly
• Build the value of our online offering as
lower expense structure. We plan to open 30
more consumers opt for digital delivery
small-market Sam Goody stores in fiscal
of music.
2003. The following year, we plan to embark
on a 10- year expansion plan, with a goal of • Enhance the point-of-sale systems and
opening up to 800 stores. adjust the labor model so we can sell
more services.
Third, we identified several practices that
were transferable to Musicland, including • Improve our merchandising and increase
advertising effectiveness, merchandising, the number of interactive displays.
in-store standard operating procedures and
• Increase advertising effectiveness.
vendor relationships.
11
Best Buy Co., Inc.
14. Extending our Leadership
into New Markets
Early successes for
Future Shop, Canada’s top retailer of
Future Shop include:
technology and entertainment products,
posted significant increases in sales during • We completed the acquisition using a
fiscal 2002. Since we acquired the 95-store collaborative process and met our initial
chain in November 2001, its total sales rose goals for employee retention.
9.8 percent compared with the prior year’s
• We took several important steps to
pro forma sales. Comparable store sales rose
increase customer loyalty. We outsourced
by 17.4 percent, driven by the strength of the
the call center to provide 24-hour service,
digital product cycle.
seven days a week. We expanded the
We chose to acquire Future Shop because customer research program and retained a
it accelerated our plans to become the largest premier insurance company to underwrite
retailer of technology and entertainment product warranties.
products throughout North America. In addition,
• We opened an automated 450,000-
we believed that the acquisition would create
square-foot distribution center in Ontario to
value for shareholders, as it was immediately
support store growth.
accretive to earnings and it advanced our
revenue goals for Canada by at least three Our goals for fiscal 2003 include:
years. Through the acquisition, we also added
• Launch Best Buy stores in Canada. We
top-notch employees who are familiar with
expect to open six to eight stores this fall in
the country’s unique competitive dynamics.
the Greater Toronto area, which will be our
Future Shop supplies us with important first international Best Buy stores. All of the
avenues for growth as well. We expect to stores will utilize the Concept 5 format.
open eight or nine more Future Shop stores in
• Begin leveraging Best Buy’s expertise in
Canada in fiscal 2003 and believe that we
key areas, including supply chain manage-
have significant opportunity to increase sales
ment and advertising effectiveness.
in this highly fragmented market.
• Continue to execute the Future Shop busi-
We also believe that we can boost
ness plan, which includes the opening of
Future Shop’s operating margins by leveraging
another eight to nine new stores across
our structural capital, including knowledge
Canada in fiscal 2003.
about in-store standard operating procedures,
supply chain management, advertising,
merchandising and other proprietary
Best Buy processes.
12 Business Review: Future Shop
15. Future Shop stores, which average
26,000 square feet, cater to consumers
in Canada ages 25 to 44. Our stores
are known as the place to “get it first.”
13
Best Buy Co., Inc.
16. Extending our Leadership
into New Locations
Our goals for fiscal 2003 include:
Our Magnolia Hi-Fi stores had a challenging
fiscal 2002. Comparable store sales at this • Increase the store count by nearly 50
retailer of high-end consumer electronics percent. We expect to open six additional
declined during the year amid a national California stores with an average of
recession and high unemployment in the 11,000 square feet. The new stores would
Pacific Northwest, where most of these stores bring our total to 19 stores.
operate. Total sales decreased 5.4 percent to
• Expand the product and service offering
$99 million, as negative comparable store
to include popular digital products. The
sales offset strong gains in the two newest
current offering focuses on home theater
stores in California and at Magnolia Hi-Fi’s
systems and select consumer electronics.
Design Center in Seattle, which provides
We expect to increase the digital imaging
custom installations of home theater systems.
product assortment and launch digital
Founded in 1954, the chain has flourished services and personal digital assistants.
largely due to its reputation for superior service.
• Prepare the chain for aggressive growth.
Magnolia Hi-Fi expanded to California more
We plan to build the management and staff
than one year ago as part of a test of whether
infrastructure, and partner with Best Buy’s
the stores could be successful outside their
top-notch real estate team to determine
traditional market. We are pleased with the
locations for future stores.
strong consumer acceptance we enjoyed,
which resulted in strong positive comparable • Use the Company’s knowledge management
store sales at our California stores. systems for merchants in different business
units to share information about products,
We continue to believe that Magnolia Hi-Fi
features, prices and services sought by
has the potential to expand to 150 stores
early adopter customers.
nationwide. Before we embark on an aggres-
sive growth strategy for the chain, we believe
that we must refine the store concept and
broaden the scope of products and services
we offer to our existing customer base, which
includes affluent early adopters of technology,
typically ages 25 to 54.
14 Business Review: Magnolia Hi-Fi
18. Company Snapshot
$19,597 4.8%
Best Buy
4.3%
Musicland
3.9%
$15,327
International 3.5%
$12,494
$10,065
$8,338 2.0%
1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Revenues Operating Income Percentage
(in millions)
We have grown revenues by an average rate of Our operating income rate has increased by 2.8 percent
20 percent per year through new stores, sales of sales, reflecting improvements in our gross margin.
increases at existing stores and acquisitions.
2,942
Best Buy 22.6%
Peer Group
20.0%
19.2%
S&P 500 18.0%
2,076
2,005
15.7%
1,734
644
365 341
295 286
166
100
162 181 150
166
135
1997 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Stock Price Performance Gross Profit Percentage
Our stock price has dramatically outperformed the Our 2002 gross profit percentage improvement reflects
S&P 500 and an index of our peers, including retailers our Musicland acquisition, a richer product mix, fewer
such as Circuit City, Radio Shack and Home Depot. markdowns and lower consumer financing costs.
The Wall Street Journal ranked our stock No.1 in total
return to shareholders over the last five years.
16 Company Snapshot
19. $1.77 1,910
Best Buy
1,741
Musicland
Magnolia Hi-Fi
$1.24 International
$1.09
$.69
$.30 357
311
284
($.02)
1997 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Earnings Per Share Store Count
Our diluted earnings per share growth reflects the increase Our number of retail stores has increased dramatically
in our gross profit percentage, new stores, expense controls with the addition of Musicland and Future Shop.
and acquisitions.
33% Consumer Electronics 31% Home Office
Product Sales Mix
8% Other (Best Buy Stores)
Consumer electronic sales surpassed
6% Appliances 22% Entertainment Software
home office sales in fiscal 2002, reflecting
strength in sales of digital products.
7.6 7.5
7.2
6.6
17%
5.6
12%
2001 2002
1998 1999 2000 2001 2002
Digital Products Percentage
Inventory Turns (Best Buy Stores) (Best Buy Stores)
Inventory management remains a strength of the company. Digital product sales grew to 17% of total sales in
We held inventory turns steady in fiscal 2002 despite soft fiscal 2002 as the product cycle continued to expand.
sales of high-turning desktop computers.
17
Best Buy Co., Inc.
20. 10-Year Financial Highlights
$ in millions, except per share amounts
Fiscal Year (1) 2002 (2) 2001(2) 2000 1999 1998
Statement of Earnings Data
$ 19,597
Revenues $ 15,327 $12,494 $10,065 $ 8,338
4,430
Gross profit 3,059 2,393 1,815 1,312
Selling, general and
3,493
administrative expenses 2,455 1,854 1,464 1,146
937
Operating income 604 539 351 166
570
Net earnings (loss) 396 347 216 82
Per Share Data (3)
$ 1.77
Net earnings (loss) $ 1.24 $ 1.09 $ .69 $ .30
51.47
Common stock price: High 59.25 53.67 32.67 10.20
22.42
Low 14.00 27.00 9.83 1.44
Operating Statistics
1.9%
Comparable store sales change (4) 4.9% 11.1% 13.5% 2.0%
7.5
Inventory turns (5) 7.6 7.2 6.6 5.6
22.6%
Gross profit percentage 20.0% 19.2% 18.0% 15.7%
Selling, general and administrative
17.8%
expense percentage 16.0% 14.8% 14.5% 13.7%
4.8%
Operating income percentage 3.9% 4.3% 3.5% 2.0%
$ 38
Average revenues per store(6) $ 39 $ 37 $ 34 $ 30
Year-End Data
$ 881
Working capital $ 214 $ 453 $ 662 $ 666
7,375
Total assets 4,840 2,995 2,532 2,070
820
Long-term debt, including current portion 296 31 61 225
—
Convertible preferred securities — — — 230
2,521
Shareholders’ equity 1,822 1,096 1,034 536
Number of stores
481
Best Buy 419 357 311 284
13
Magnolia Hi-Fi 13 — — —
1,321
Musicland 1,309 — — —
95
International — — — —
Total retail square footage (000s)
21,599
Best Buy 19,010 16,205 14,017 12,694
133
Magnolia Hi-Fi 133 — — —
8,806
Musicland 8,772 — — —
1,923
International — — — —
Please read this table in conjunction with Management’s Discussion During the third quarter of fiscal 2002, we acquired the common
(2)
and Analysis of Results of Operations and Financial Condition, stock of Future Shop Ltd. During the fourth quarter of fiscal 2001,
beginning on page 20, and the Consolidated Financial Statements we acquired the common stock of Musicland Stores Corporation
and Notes, beginning on page 34. (Musicland) and Magnolia Hi-Fi, Inc. (Magnolia Hi-Fi). The
results of operations of these businesses are included from their
Both fiscal 2001 and 1996 included 53 weeks. All other periods
(1)
dates of acquisition.
presented included 52 weeks.
18 10 -Year Financial Highlights
21. 10 -Year 5-Year
Compound Compound
$ in millions, except per share amounts
Annual Annual
1997 1996 1995 1994 1993 Growth Rate Growth Rate
$ 7,758 $ 7,215 $ 5,080 $ 3,007 $1,620 35.6% 20.4%
1,046 934 690 457 284 — —
1,006 814 568 380 248 — —
40 120 122 77 36 47.9% 87.7%
(6) 46 58 41 20 50.4% —
$ (.02) $ .18 $ .21 $ .17 $ .10
4.37 4.94 7.54 5.24 2.61
1.31 2.13 3.69 1.81 .78
(4.7%) 5.5% 19.9% 26.9% 19.4%
4.6 4.8 4.7 5.0 4.8
13.5% 12.9% 13.6% 15.2% 17.5%
13.0% 11.3% 11.2% 12.6% 15.3%
.5% 1.7% 2.4% 2.6% 2.2%
$ 29 $ 31 $ 28 $ 23 $ 18
$ 563 $ 585 $ 609 $ 363 $ 119
1,740 1,892 1,507 952 439
238 230 241 220 54
230 230 230 — —
429 430 376 311 182
272 251 204 151 111
— — — — —
— — — — —
— — — — —
12,026 10,771 8,041 5,072 3,250
— — — — —
— — — — —
— — — — —
Earnings per share is presented on a diluted basis and reflects a with the first full quarter following the first anniversary of the date
(3)
three-for-two stock split in May 2002; two-for-one stock splits in of acquisition.
March 1999, May 1998 and April 1994; and a three-for-two
Inventory turns reflect Best Buy stores only and are calculated
(5)
stock split in September 1993.
based upon a monthly average of inventory balances.
Comparable stores are stores open at least 14 full months,
(4)
Average revenues per store reflect Best Buy stores only and
(6)
include remodeled and expanded locations and, for all periods
are based upon total revenues for the period divided by the
presented, reflect Best Buy stores only. Relocated stores are
weighted average number of stores open during the fiscal year.
excluded from the comparable store sales calculation until at
least 14 full months after reopening. Acquired stores will be
included in the comparable store sales calculation beginning 19
Best Buy Co., Inc.
22. Management’s Discussion and Analysis of Results of
Operations and Financial Condition
Overview high-end consumer electronics with 13 stores. All three
acquisitions were accounted for using the purchase
Best Buy Co., Inc. is North America’s No. 1 specialty
method. Under this method, the net assets and results of
retailer of consumer electronics, home office equipment,
operations of those businesses are included in our
entertainment software and appliances. In November of
consolidated financial statements from their respective
fiscal 2002, we acquired Future Shop Ltd. (Future Shop).
dates of acquisition. We currently operate three reportable
Future Shop currently operates 95 stores and is Canada’s
segments: Best Buy, Musicland and International. The
largest specialty retailer of name-brand consumer electronics,
Best Buy segment aggregates all operations exclusive of
home office equipment, entertainment software and appli-
Musicland and International operations. The International
ances. During the fourth quarter of fiscal 2001, we
segment was established in the third quarter of fiscal 2002
acquired Musicland Stores Corporation (Musicland) and
in connection with our acquisition of Future Shop.
Magnolia Hi-Fi, Inc. (Magnolia Hi-Fi). Musicland is pri-
marily a mall-based national retailer of prerecorded music, Our fiscal year ended March 2, 2002, contained 52
movies and other entertainment-related products with weeks. Fiscal 2001 and 2000 contained 53 weeks and
1,321 stores. Magnolia Hi-Fi is a Seattle-based retailer of 52 weeks, respectively.
Results of Operations
Consolidated
The following table presents selected consolidated financial data for each of the past three fiscal years ($ in millions,
except per share amounts):
Pro forma
2002 2001 2001 (1) 2000
$ 19,597
Revenues $ 15,327 $ 17,621 $ 12,494
28%
Revenues % change 23% — 24%
1.9%
Comparable stores sales % gain (2) 4.9% 4.9% 11.1%
22.6%
Gross profit as a % of revenues 20.0% 21.8% 19.2%
17.8%
SG&A as a % of revenues 16.0% 17.8% 14.8%
$ 937
Operating income $ 604 $ 703 $ 539
4.8%
Operating income as a % of revenues 3.9% 4.0% 4.3%
$ 570
Net earnings $ 396 $ 425 $ 347
$ 1.77
Diluted earnings per share (3) $ 1.24 $ 1.33 $ 1.09
Pro forma information reflects combined results of operations at Best Buy, Musicland and Future Shop. Musicland’s results of operations
(1)
are presented as if it had been acquired at the beginning of fiscal 2001 and include amortization of goodwill. Future Shop’s results of
operations are presented as if it had been acquired at the beginning of November in fiscal 2001 and do not include amortization
of goodwill. Pro forma results are unaudited.
Comparable stores are stores open at least 14 full months, include remodeled and expanded locations and, for all periods presented,
(2)
reflect Best Buy stores only. Relocated stores are excluded from the comparable store sales calculation until at least 14 full months after
reopening. Acquired stores will be included in the comparable store sales calculation beginning with the first full quarter following the
first anniversary of the date of acquisition.
The diluted earnings per share amounts above have been restated to reflect a three-for-two stock split effective on May 10, 2002.
(3)
20 MD&A
23. Net earnings for fiscal 2002 increased 44%, growing to costs, improved productivity and comparison with prior
a record $570 million, compared with $396 million in fiscal year expenses, which included the launch of
fiscal 2001 and $347 million in fiscal 2000. Earnings BestBuy.com™, our entry into the New York market and the
per diluted share increased to $1.77 in fiscal 2002, write-off of certain e-commerce investments.
compared with $1.24 in fiscal 2001 and $1.09 in
Fiscal 2001 revenues were $15.3 billion, compared with
fiscal 2000.
$12.5 billion in fiscal 2000. The majority of the increase
Our net earnings increase was primarily driven by an in revenues, compared with the prior fiscal year, was due
improved gross profit rate, new store growth, expense to the addition of 62 Best Buy stores, a full year of
controls and the inclusion of operations from acquired operations at the 47 Best Buy stores opened in fiscal
businesses. Revenues compared with the last fiscal year’s 2000 and a 4.9% comparable store sales increase at
reported results grew 28%. Approximately half of the Best Buy stores. The remainder of the increase resulted
increase in revenues was due to new Best Buy stores from the inclusion of revenues generated by Musicland
opened in the past two fiscal years, including 62 new and Magnolia Hi-Fi from their dates of acquisition and
stores opened in fiscal 2002. The remainder of the the inclusion of a 53rd week that added approximately
increase was due to the inclusion of revenues from $280 million in revenues. The Best Buy comparable store
acquired businesses. The 1.9% increase in comparable sales increase reflected the strength of the digital product
Best Buy store sales was offset by the inclusion of an extra cycle and benefits from our enhanced operating model
week of operations in fiscal 2001, which increased fiscal that included an improved merchandise assortment, higher
2001 revenues by approximately $280 million. in-stock positions and more consistent store execution.
Our improved gross profit rate was due to increased sales Gross profit in fiscal 2001 increased to 20.0% of
of higher-margin digital products, improved supply chain revenues, compared with 19.2% of revenues in fiscal
management and more effective promotional strategies. 2000, mainly due to improved product margins and a
In addition, the inclusion of Musicland’s higher-margin more profitable sales mix that resulted from increased sales
sales mix increased our gross profit rate by approximately of digital products and higher-end, more fully featured
1.1% of revenues. products. In addition, the inclusion of Musicland’s higher
margin sales mix increased our gross profit rate by
Our selling, general and administrative expenses (SG&A)
approximately 0.2% of revenues.
rate was 17.8% of revenues, an increase of 1.8% of
revenues over last fiscal year. The inclusion of Musicland’s Our SG&A rate increased to 16.0% of revenues in fiscal
higher expense structure increased our SG&A rate by 2001, compared with 14.8% in fiscal 2000, primarily
approximately 1.4% of revenues. The remainder of the due to our increased investment in strategic initiatives and
increase was primarily due to the impact of operating a more modest sales growth environment. In addition, the
expenses increasing at a faster rate than comparable store launch and operation of BestBuy.com, expenses related to
sales, as well as increased performance-based our entry into the New York market and the write-off of
compensation, higher depreciation expenses related to certain e-commerce investments also impacted our SG&A
capital investments and increased charitable giving. The rate in fiscal 2001.
increase was partially offset by reduced outside consulting
21
Best Buy Co., Inc.
24. In addition to traditional financial measurements, we use employed. We use EVA as one of several internal financial
Economic Value Added (EVA® ) to measure our financial measures, and it is not intended to represent a measure of
performance and manage our allocation of capital financial performance with respect to accounting principles
resources. Also, a portion of executive incentive compen- generally accepted in the United States. Other organiza-
sation is related to the achievement of targeted levels of tions that use EVA as a measurement of financial
annual EVA improvement. EVA is a financial performance performance may define and calculate EVA differently.
measurement that includes the economic cost of assets
Segment Performance
Best Buy
The following table presents selected financial data for the Best Buy segment for each of the past three fiscal years
($ in millions):
Segment Performance Summary (1)
2002 2001 2000
(unaudited)
$17,115
Revenues $15,189 $12,494
1.9%
Comparable stores sales % gain (2) 4.9% 11.1%
21.2%
Gross profit as a % of revenues 19.8% 19.2%
16.0%
SG&A as a % of revenues 15.8% 14.8%
$ 886
Operating income $ 611 $ 539
5.2%
Operating income as a % of revenues 4.0% 4.3%
Aggregate results of our businesses other than Musicland and International.
(1)
Includes only sales at Best Buy stores open at least 14 full months, and includes remodeled and expanded locations. Relocated stores
(2)
are excluded from the comparable store sales calculation until they have been reopened for at least 14 full months.
22 MD&A
25. Best Buy revenues for fiscal 2002 increased 13% to the industry. Overall, we believe our improved supply
$17.1 billion, compared with $15.2 billion in fiscal chain management and consistent store execution also
2001. Approximately half of the increase in revenues was contributed to increased revenues and market share gains.
due to new Best Buy stores opened in the past two fiscal
Gross profit in fiscal 2002 increased to 21.2% of revenues,
years, including 62 new stores in fiscal 2002. The 1.9%
up from 19.8% of revenues last fiscal year. Approximately
increase in comparable Best Buy store sales was offset by
half of the increase was due to a more profitable sales mix;
the inclusion of an extra week of operations in fiscal
the remainder of the increase was due to reduced
2001, which increased fiscal 2001 revenues by
markdowns resulting from improved supply chain
approximately $280 million. The Best Buy comparable
management and more effective promotional strategies,
store sales increase was primarily the result of sales gains
as well as lower costs associated with consumer financing
in the entertainment software and consumer electronics
offers. Sales in the higher -margin consumer electronics
product categories, partially offset by sales declines in
and entertainment software product categories increased
the home office and appliances categories. The introduction
faster than sales in the home office category, which
of new gaming platforms, increased availability of existing
includes lower-margin personal computers. We continued
consoles and strong sales of DVD movies led to double-
to benefit from expansion in the digital product category,
digit comparable store sales growth in the entertainment
as margin rates on digital products typically are higher
software category. The growth in the entertainment
than on analog products. Inventory turns for Best Buy stores
software category was partially offset by soft sales of
declined slightly to 7.5 times in fiscal 2002, compared
prerecorded music resulting from the general absence of
with last fiscal year’s 7.6 times, due to a sales mix shift
new releases with strong consumer appeal, an increase in
from faster-turning computers to consumer electronics,
the downloading of music via Internet sites and greater
improved in-stock positions and modest comparable store
consumer awareness of CD recording technology. Within
sales growth. Lower costs associated with consumer
the consumer electronics category, digital products,
financing offers resulted from reduced interest rates
including digital televisions, DVD hardware, digital
and more favorable terms related to a new private-label
cameras and digital camcorders, experienced the largest
credit card agreement.
comparable store sales increases. Digital products
Our SG&A rate increased to 16.0% of revenues in fiscal
comprised 17% of the sales mix in fiscal 2002, compared
2002, compared with 15.8% in the prior fiscal year. The
with 12% in the last fiscal year. Soft sales of desktop and
increase was primarily due to expenses associated with
configure-to-order computers as well as reduced prices for
less mature stores, the deleveraging effect of modest
computer peripherals resulted in a comparable store sales
comparable store sales growth, increased performance-
decline in the home office product category. The decline
based compensation expense related to our 44% increase
was partially offset by increased sales of notebook
in net earnings and increased depreciation expense
computers and wireless communication devices. In the
resulting from capital investments in new Best Buy stores
aggregate, sales of personal computers declined due to
and core financial and operating systems. We also
weaker consumer demand for desktop computers and
increased our charitable giving in fiscal 2002. Our
challenging economic conditions. Appliance sales were
increased expenses were partially offset by reduced
soft primarily as a result of increased competition and a
advertising expenditures as a percentage of revenues,
general slowdown in consumer demand throughout
23
Best Buy Co., Inc.
26. improved productivity and comparison with prior fiscal During fiscal 2002, we opened 62 new Best Buy stores,
year expenses, which included the launch of BestBuy.com, including 20 stores in our 30,000-square-foot format.
our entry into the New York market and the write-off of The openings brought our total to 481 stores, compared
certain e-commerce investments. In addition, our focus on with 419 stores at the end of fiscal 2001. In addition, we
controlling expenses, such as corporate hiring and outside remodeled three Best Buy stores and expanded two
consulting costs, positively impacted our SG&A rate. Best Buy stores during fiscal 2002, compared with no
Overall, the results of operations at Magnolia Hi-Fi did not remodeled stores and two expanded stores in fiscal 2001.
significantly impact the Best Buy segment’s financial results. Magnolia Hi-Fi continued to operate 13 stores,
unchanged from fiscal 2001.
Musicland
The following table presents selected financial data for the Musicland segment for each of the past two fiscal years
($ in millions):
Segment Performance Summary Pro forma
2002 2001(1)
(unaudited)
$1,886
Revenues $1,915
(0.9%)
Comparable stores sales % change (0.7%)
(2)
35.0%
Gross profit as a % of revenues 36.9%
33.5%
SG&A as a % of revenues 32.9%
$ 29
Operating income $ 77
1.6%
Operating income as a % of revenues 4.0%
Pro forma results of operations at Musicland, including the amortization of goodwill, as though it had been acquired at the
(1)
beginning of fiscal 2001.
Includes sales at Musicland stores open at least 12 months. Relocated stores are included in the comparable store sales calculation.
(2)
For fiscal 2002, Musicland revenues were $1.9 billion, Musicland’s fiscal 2002 gross profit margin of 35.0% of
slightly lower than last year’s pro forma results. revenues declined by 1.9% of revenues compared with
Comparable store sales decreased 0.9% for the fiscal year last year’s pro forma results. The decline was primarily due
primarily due to reduced mall traffic and softness in sales to a change in the product mix, including soft sales of
of prerecorded music and VHS movies. The comparable prerecorded music and increased sales of lower-margin
store sales decline was partially offset by increased DVD movies and gaming hardware and software.
sales of DVD movies and the introduction of new gaming
hardware and software.
24 MD&A
27. The SG&A rate was 33.5% of revenues in fiscal 2002 partially offset by reduced advertising expenditures. In
compared with a pro forma rate of 32.9% last fiscal year. addition, both fiscal 2002 and pro forma 2001 included
The SG&A rate increase was primarily the result of the approximately $16 million of goodwill amortization.
deleveraging impact of the comparable store sales Goodwill amortization will cease at the beginning of
decline, higher distribution costs and increased expenses fiscal 2003 with our adoption of SFAS No. 142,
associated with the remerchandising of Sam Goody stores, Goodwill and Other Intangible Assets.
International
The following table presents selected financial data for the International segment for each of the past two fiscal years
($ in millions):
Segment Performance Summary Pro forma
2002 (1)
2001(2)
(unaudited)
$596
Revenues $543
17.4%
Comparable stores sales % gain —
(3)
23.4%
Gross profit as a % of revenues 24.3%
19.7%
SG&A as a % of revenues 21.4%
$ 22
Operating income $ 16
3.7%
Operating income as a % of revenues 2.9%
Results of operations at Future Shop since its acquisition at the beginning of November fiscal 2002.
(1)
Pro forma information presents the results of operations of Future Shop as though it had been acquired at the beginning of November
(2)
fiscal 2001.
Includes sales at Future Shop stores open at least 14 full months, and includes remodeled and expanded locations. Relocated stores
(3)
are excluded from the comparable store sales calculation until they have been reopened for at least 14 full months. The comparable
store sales calculation excludes the impact of foreign currency exchange rate fluctuations.
Future Shop revenues were $596 million in fiscal 2002, to a shift in the sales mix driven by increased sales of
a 10% increase compared with last year’s pro forma lower-margin entertainment software products. The impact
results. For the year, comparable store sales increased of the sales mix shift was partially offset by lower costs
17.4%, before the impact of foreign currency exchange associated with consumer financing offers due to lower
rate fluctuations. The comparable store sales gains were interest rates and more favorable terms related to a new
driven by increased sales of entertainment software private-label credit card agreement.
products and consumer electronics, which includes the
For the year, the SG&A rate was 19.7% of revenues,
rapidly expanding digital product category.
compared with 21.4% of revenues last year, on a pro
In fiscal 2002, Future Shop’s gross profit was 23.4% of forma basis. Increased leverage resulting from strong
revenues, a decrease of 0.9% of revenues compared with comparable store sales gains and controlled expenses
last year’s pro forma results. The decline was mainly due contributed to the SG&A rate decrease.
25
Best Buy Co., Inc.
28. Consolidated Results Liquidity and Capital Resources
Net Interest (Expense) Income Summary
Net interest expense was $1 million in fiscal 2002, We improved our financial position in fiscal 2002 while
compared with net interest income of $37 million last continuing to make significant investments in new growth
fiscal year. Fiscal 2002 included an $8 million pre-tax initiatives, including the $377 million, or $368 million net of
charge from the early retirement of debt acquired as part cash acquired, acquisition of Future Shop. Cash and cash
of the Musicland acquisition. The balance of the change equivalents increased to $1.9 billion at the end of fiscal
in net interest resulted primarily from lower yields on 2002, compared with $747 million at the end of
short-term investments as the average interest rate declined fiscal 2001. Working capital, the excess of current assets
by more than 2% compared with last fiscal year. The over current liabilities, increased to $881 million at the end
impact of lower short -term investment yields was partially of fiscal 2002, compared with $214 million at the end of
offset by higher average cash balances resulting from fiscal 2001. In fiscal 2002, strong operating cash flows
strong operating cash flows and net proceeds from the and net proceeds from the issuance of convertible
issuance of convertible debentures. debentures strengthened our liquidity position; however,
our long-term debt -to-capitalization ratio increased to
Net interest income increased to $37 million in fiscal
24% at the end of fiscal 2002, compared with 9% at the
2001 compared with $24 million in fiscal 2000. The
end of fiscal 2001.
increase was due to higher cash balances compared with
Cash Flows
the prior fiscal year. The higher cash balances were the
result of cash flows generated from operations, including Cash provided by operating activities was $1.6 billion
improved inventory management and a $200 million in fiscal 2002, compared with $808 million in fiscal
investment in Best Buy common stock by Microsoft 2001 and $776 million in fiscal 2000. The increase in
Corporation as part of a strategic alliance. Interest expense operating cash flows in fiscal 2002, compared with the
on Musicland debt and lost interest income on the cash prior fiscal year, was driven by increased net earnings
used to acquire Musicland and Magnolia Hi-Fi reduced and cash generated from changes in net operating assets
net interest income by approximately $4 million. and liabilities. The changes were related to increased
accounts payable balances due to higher business volume
Effective Income Tax Rate
and timing of invoice payments, as well as increased
Our effective income tax rate increased to 39.1%, up from
accrued income taxes. In addition, other liabilities
38.3% last fiscal year. The increase in the effective income
increased due to business growth, advances received
tax rate was primarily due to the nondeductibility of
under vendor alliances, increased gift card liabilities and
goodwill amortization expense resulting from our acquisi-
higher accrued performance - based compensation
tions in the fourth quarter of fiscal 2001.
expenses resulting from our improvement in net earnings.
Our effective income tax rate in fiscal 2001 was 38.3%, The changes were partially offset by increased ending
unchanged from fiscal 2000. Historically, our effective tax inventory, which resulted from the operations of 62 new
rate has been impacted primarily by the taxability of Best Buy stores and improved in-stock levels.
investment income and state income taxes.
Net cash used in investing activities in fiscal 2002 was
$965 million, compared with $1.0 billion and $416 million
26 MD&A
29. in fiscal 2001 and 2000, respectively. In fiscal 2002, investment opportunities. Our liquidity is not currently
cash was used for business acquisitions, construction of dependent on the use of off-balance sheet financing
new retail locations, information systems improvements arrangements other than operating leases.
and other additions to property, plant and equipment,
We have a $200 million unsecured revolving credit
including construction of a new corporate headquarters
facility scheduled to mature in March 2005 and, as a
and expansion of our distribution facilities. The primary
result of the Future Shop acquisition, a $44 million secured
purpose of the cash investment activity was to support our
revolving credit facility that will expire in fiscal 2003. The
expansion plans, improve our operational efficiency and
$44 million facility increases to $53 million on a seasonal
enhance shareholder value. Strong operating cash flows
basis. We also have a $200 million inventory financing
more than offset cash used to fund our business expansion
line. Borrowings under this line are collateralized by a
plans, construct new stores and fund strategic initiatives.
security interest in certain merchandise inventories
In fiscal 2002 and 2001, net cash provided by financing approximating the outstanding borrowings. We received
activities was $495 million and $218 million, respectively, no advances under the $200 million credit facility or the
while $395 million was used in financing activities in inventory financing line in fiscal 2002 or 2001.
fiscal 2000. We raised $726 million, net of offering Future Shop had peak borrowings under the $44 million
expenses, through the issuance of convertible debentures credit facility of $32 million and $39 million in fiscal
in fiscal 2002. The proceeds of the issuance will be used 2002 and 2001, respectively.
for general corporate purposes. Favorable market
Our credit ratings as of March 2, 2002, were as follows:
conditions were also a factor in the decision to issue
Rating Agency Rating Outlook
convertible debentures. In addition, we retired $266
million in Senior Subordinated Notes due 2003 and Fitch BBB Stable
2008 acquired as part of the Musicland acquisition. Moody’s Baa3 Stable
Fiscal 2001 included a $200 million investment by Standard & Poor’s BBB - Negative
Microsoft Corporation in our common stock. For more
Factors that can impact our credit rating include changes
information regarding the convertible debentures and
in the economic environment, conditions in the retail and
retirement of debt, refer to note 3 of the Notes to
consumer electronics industries, our financial position and
Consolidated Financial Statements on page 43.
changes in our business strategy. We do not currently
Sources of Liquidity foresee any reasonable circumstances under which our
Funds generated by operations and existing cash and credit rating would be significantly downgraded.
cash equivalents continue to be our most significant However, if a significant downgrade were to occur, it
sources of liquidity. We currently believe funds generated could adversely impact, among other things, our future
from the expected results of operations and available cash borrowing costs, access to capital markets, vendor financ-
and cash equivalents will be sufficient to finance ing terms and future new store operating lease costs.
anticipated expansion plans and strategic initiatives for the In addition, the conversion rights of the holders of our
next fiscal year. In addition, our revolving credit facility is convertible debentures could be accelerated if our credit
available for additional working capital needs or rating were to be downgraded.
27
Best Buy Co., Inc.
30. Contractual Obligations and Available Commercial Commitments
The following table presents information regarding contractual obligations by fiscal year ($ in millions):
Contractual Obligations
Payments Due
2003 2004 2005 2006 2007 Thereafter
Operating leases $472 $459 $417 $376 $361 $2,698
Long-term debt 7 6 3 40 1 763
Purchase commitments 120 5 — — — —
Total $599 $470 $420 $416 $362 $3,461
Note: For more information regarding operating leases, long-term debt and purchase commitments, refer to notes 3, 5 and
9, respectively, in the Notes to Financial Statements beginning on page 39.
The following table presents information regarding available commercial commitments and their expiration dates
by fiscal year ($ in millions):
Available Commercial Commitments
Expires
Amount 2003 2004 2005 2006 Thereafter
Lines of credit $ 222 $ 31 $— $— $ 191 $—
(1)
Master lease agreement 23 — — — 23 —
Inventory financing line 200 200 — — — —
Total $ 445 $ 231 $— $— $ 214 $—
Our $44 million revolving credit facility increases to $53 million on a seasonal basis. Nine million dollars of our $200 million line
(1)
of credit were committed to stand-by letters of credit.
28 MD&A