Best Buy 1999 Annual Report Download - page 30

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MANAGE ME NT ’S DI S CU S S I ON & ANALYS I S OF R E S U L T S OF
OPE R AT I ONS AND F I NANCI AL CONDI T I ON
E S T U Y O N C
QUARTERLY RESULTS AND SEASONALITY
Similar to most retailers, the Company’s business is seasonal. Revenues and earnings are lower during the first half
of each fiscal year and are greater during the second half, which includes the holiday selling season. The timing
of new store openings and general economic conditions may affect future quarterly results of the Company.
The following tables set forth the Company’s unaudited quarterly operating results and high and low common
stock prices for each quarter of fiscal 1999 and 1998.
($ in thousands, except per share amounts; per share amounts have been adjusted for a two-for-one stock split in March 1999)
U A R T E R 1S T N D R D T H
Fiscal 1999
Revenues $ 1,943,6 64 $ 2,1 8 2 ,124 $ 2,493,8 4 3 $ 3,4 5 8 ,275
Gross profit 354,2 1 9 410,349 445,591 617,624
Operating income 28,065 72,795 91,6 0 6 172,0 3 6
Net earnings 15,725 44,135 54,3 8 9 110,1 8 8
Diluted earnings per share .08 .21 .26 .52
Fiscal 1998
Revenues $ 1,606,5 51 $ 1,793,2 04 $ 2,106,3 61 $ 2,8 5 2,096
Gross profit 247,8 8 3 288,908 337,890 457,457
Operating income 5,216 19,926 52,9 1 9 108,7 9 7
Net earnings ( loss) (2,639) 6,648 26,4 1 8 64,026
Diluted earnings ( loss) per share ( .02) .0 4 .14 .32
COMMON STOCK PRICES
U A R T E R 1S T N D R D T H
Fiscal 1999
High $ 19 $ 27
13 ⁄32 $ 29
27 ⁄32 $ 49
Low 14 3⁄414 7⁄816 23 7⁄1 6
Fiscal 1998
High $ 3
19 ⁄32 $ 4 3⁄8$7
9⁄1 6 $ 15 19 ⁄6 4
Low 2 5⁄3 2 2 13 ⁄1 6 4 7⁄32 79⁄32
Best Buy’s common stock is traded on the New York Stock Exchange, symbol BBY. As of March 31, 1999, there
were 1,656 holders of record of Best Buy common stock. The Company has not historically and does not intend
to pay cash dividends on its common stock.
SAFE HARBOR STATEMENT UNDER
THE PRIVATE SECURITIES LITIGATION REFORM ACT
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements to
encourage companies to provide prospective information about their companies. With the exception of historical
information, the matters discussed in the Annual Report are forward-looking statements that involve risks and
uncertainties. Such risks and uncertainties include, among other things, the Company’s expectations regarding the
economy, future sales volumes, profit margins, its Year 2000 readiness, the impact of labor markets and new
product introductions on the Company’s overall profitability. Readers are encouraged to review the Company’s
Current Report on Form 8-K filed on May 15, 1998, that describes additional important factors that could cause
actual results to differ materially from those contemplated by the statements made herein.