Revenue Composition
During the third quarter, domestic revenue remained heavily weighted toward Computing and Mobile products, which delivered 47% of U.S. sales. Consumer Electronics accounted for 28%, underscoring sustained demand for televisions, audio equipment and connected devices. The balance of domestic revenue came from appliances, entertainment software, services and other categories that the company tracks separately. While precise percentages for each of those lines were not disclosed in the latest summary, the shift toward higher-margin services continues to be one of the retailer’s strategic priorities.
International Share of Sales
International operations contributed roughly 8% of fiscal 2025 revenue, all of which came from Canada. The relatively modest share underscores Best Buy’s primary focus on its U.S. business after exiting several overseas ventures in the previous decade. As a result, currency fluctuations and regional economic trends in Canada remain the firm’s principal external variables outside its home market.
Analyst Perspective
Argus Research senior analyst Chris Graja, CFA, recently revisited his outlook for Best Buy shares, noting the retailer’s streamlined footprint and revenue mix. Graja, a multiple recipient of Refinitiv’s StarMine U.S. Analyst awards, has long covered the consumer sector and now focuses on how service offerings and membership programs may influence same-store sales and profitability. While the precise rating adjustment was not specified in the summary, the analyst’s history of sector-leading accuracy lends weight to any change in stance.
Graja’s background includes 16 years at Bloomberg Financial Markets, where he held editorial and research leadership positions before joining Argus. He earned an MBA from Rutgers University and is a Chartered Financial Analyst charterholder. His credentials, alongside prior recognition for stock-picking in household durables and food-and-staples retailing, form part of the context investors often consider when evaluating his assessments.
Comparative Trend Lines
The decrease in total square footage—down more than 20% from fiscal 2011—parallels a broader trend among U.S. big-box retailers toward leaner physical presences. According to publicly filed Securities and Exchange Commission documents, Best Buy has consistently emphasized online sales growth and store-within-a-store partnerships as ways to offset shrinking square footage. The company’s ongoing remodel program seeks to allocate more floor area to high-velocity categories and curb expenses tied to low-traffic departments.
Financial Implications of Footprint Reduction
Cutting excess real estate can reduce fixed costs, but it also places pressure on inventory management and fulfillment logistics. Best Buy’s average U.S. store size remains large compared with many specialty chains, yet the square-foot optimization has allowed the firm to repurpose space for pickup counters, service desks and distribution hubs. Management believes those changes can preserve in-store traffic while supporting order-online-pickup-in-store transactions, although execution risks persist amid fluctuating demand for consumer hardware.
Key Dates and Data Points
- Fiscal 2025 revenue: $41.5 billion
- International revenue share: ~8%
- U.S. stores at 3Q26 close: 926
- Canadian stores at 3Q26 close: 157
- Total square footage: ~39.5 million
- Domestic sales mix (3Q26): Computing and Mobile 47%, Consumer Electronics 28%, remaining categories combined 25%
- Square footage in fiscal 2011: ~50 million
Operational Outlook
Management continues to balance store closings with selective remodels and relocations. The retailer is also integrating membership plans and service subscriptions to stabilize revenue during product-replacement cycles. As Best Buy approaches future quarters, investors will monitor comparable-sales trends, margin trajectory and any additional disclosures on category performance or international strategy.
While Best Buy’s next quarterly announcement will provide fresh insight into same-store sales and guidance, the current snapshot underscores the company’s progress in rightsizing its real estate and emphasizing profitable segments. Analyst commentary, including the latest remarks from Argus, is likely to remain focused on whether the retailer can sustain earnings momentum as consumer-electronics demand normalizes after pandemic-era peaks.
Crédito da imagem: Best Buy Co., Inc.
