Best Buy 2011 Annual Report Download - page 48

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The following table presents the International segment’s revenue mix percentages and comparable store sales percentage
changes by revenue category in fiscal 2010 and 2009:
Revenue Mix Summary Comparable Store Sales Summary
Year Ended(1) Year Ended(2)
February 27, 2010 February 28, 2009 February 27, 2010 February 28, 2009
Consumer electronics 20% 26% (12.0)% (0.9)%
Home office 53% 45% (0.8)% (2.7)%
Entertainment 7% 9% (12.4)% 3.3%
Appliances 8% 10% 7.3% (2.2)%
Services 12% 10% 6.2% 3.1%
Other <1% <1% n/a n/a
Total 100% 100% (3.7)% (0.9)%
(1) The International segment’s revenue mix changed beginning in the third quarter of fiscal 2009 due to our acquisition of Best Buy
Europe, whose business primarily relates to the sale of mobile phones and voice and data service plans, which are included in our
home office revenue category. In addition, Best Buy Europe offers mobile phone insurance and other mobile and fixed-line
telecommunication services, which are included in our services revenue category. As a result, the International segment’s home
office and services revenue categories grew in fiscal 2010, resulting in a lower mix percentage for the segment’s consumer
electronics, entertainment and appliances revenue categories.
(2) The comparable store sales figures for the fiscal year ended February 27, 2010, included six months of Best Buy Europe’s
comparable store sales. However, comparable store sales for the fiscal year ended February 28, 2009, did not include Best Buy
Europe as the third quarter of fiscal 2010 was the first period in which Best Buy Europe was included in our comparable store sales
calculation.
The products having the largest impact on our International segment’s comparable store sales decline in fiscal 2010 were
flat-panel televisions, video gaming and digital cameras and camcorders. Weaker sales of these products were partially
offset by comparable store sales gains in appliances, notebook computers and services. Our International segment’s
comparable store sales improved sequentially each quarter of fiscal 2010 amidst improving global economic conditions
and temporary government stimulus programs in China.
The 12.0% comparable store sales decline in the consumer electronics revenue category resulted primarily from declines
in the sales of flat-panel televisions, digital cameras and camcorders, and navigation products. The 0.8% comparable
store sales decline in the home office revenue category resulted primarily from comparable store sales declines in
computer monitors and accessories, partially offset by gains in the sales of notebook computers and mobile phones. The
12.4% comparable store sales decline in the entertainment revenue category reflected a decrease in the sales of video
gaming hardware and software and continued decreases in sales of DVDs and CDs. The 7.3% comparable store sales
gain in the appliances revenue category resulted from increases in the sales of major appliances and small electrics,
notably within our Canada and China operations where promotions and temporary government stimulus programs in
China helped to fuel stronger sales. The 6.2% comparable store sales gain in the services revenue category was due
primarily to an increase in revenue from our product repair business.
Our International segment experienced gross profit growth of $755 million in fiscal 2010, or 31.7%, driven predominantly
by the acquisition of Best Buy Europe. The acquisition impact of Best Buy Europe of 1.4% of revenue was the principal
driver behind the International segment’s 1.4% of revenue gross profit rate increase for fiscal 2010, with an additional
0.2% of revenue increase from gross profit rate improvements in Europe due primarily to negotiation of more favorable
vendor terms across the European business in the second half of fiscal 2010. An increase in Canada’s gross profit rate
also contributed a 0.1% of revenue increase. Offsetting these increases to the International segment’s gross profit rate was
a 0.3% of revenue decrease from China due primarily to heavier promotions and clearances.
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