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38
Fiscal 2013 (11-month) Results Compared With Fiscal 2012 (11-month recast)
For purposes of this section, fiscal 2013 (11-month) represents the 11-month transition period ended February 2, 2013 and
fiscal 2012 (11-month recast) represents the comparable 11-month period ended January 28, 2012.
We experienced a comparable store sales decline in our International segment. In Canada, comparable store sales declines were
the result of overall industry softness leading to declines in televisions, computers and gaming, which were partially offset by
increased sales of mobile phones and tablets. In China, increased competition from online competitors pressured prices across
most product categories, while the end of certain government stimulus programs in December 2011 continued to have a
negative impact on appliances. The combination of lower sales in Canada and China, as well as a decrease in the gross profit
rate due to greater promotional activity, resulted in lower gross profit and operating income in our International segment.
The components of the International segment's 8.4% revenue decrease in fiscal 2013 (11-month) were as follows:
Comparable store sales impact (11.0)%
Non-comparable sales(1) (0.5)%
Net store changes 2.7 %
Impact of foreign currency exchange rate fluctuations 0.4 %
Total revenue decrease (8.4)%
(1) Non-comparable sales reflects the impact of revenue streams not included within our comparable store sales calculation, such as certain credit card
revenue, gift card breakage and sales of merchandise to wholesalers and dealers, as applicable.
The addition of 20 large-format stores throughout the International segment in fiscal 2013 (11-month) (Five Star, Best Buy
Mexico and Best Buy Canada) contributed to the majority of the change in revenue associated with net new stores. The impact
of the closure of 21 large-format stores in the International segment (Future Shop, Best Buy Canada and Five Star) had minimal
impact on revenue, as the majority of the closures occurred late in the fourth quarter. The addition of 20 small-format stores,
including 19 new small-format Best Buy Mobile stand-alone stores in Canada, had a significantly smaller impact on the overall
revenue change given their smaller square footage compared to our large-format stores.
The following table presents the International segment's revenue mix percentages and comparable store sales percentage
changes by revenue category in fiscal 2013 (11-month) and 2012 (11-month recast):
Revenue Mix Summary Comparable Store Sales Summary
11 Months Ended 11 Months Ended
February 2, 2013 January 28, 2012 February 2, 2013 January 28, 2012
Consumer Electronics(1) 31% 33% (16.4)% (7.8)%
Computing and Mobile Phones(1) 39% 37% (4.3)% 7.2 %
Entertainment 8% 8% (17.4)% (13.4)%
Appliances 17% 17% (15.1)% 2.9 %
Services 5% 5% (10.0)% (6.4)%
Other <1% <1% n/a n/a
Total 100% 100% (11.4)% (1.5)%
(1) In fiscal 2014, e-Readers were moved from the "Consumer Electronics" revenue category to "Computing and Mobile Phones" to reflect the continued
convergence of their features with tablets and other computing devices.
The following is a description of the notable comparable store sales changes in our International segment by revenue category:
• Consumer Electronics: The 16.4% comparable store sales decline was driven primarily by decreases in sales of
televisions, MP3 devices and digital imaging products, primarily in Canada, as a result of industry softness and device
convergence similar to that experienced within our Domestic segment.
• Computing and Mobile Phones: The 4.3% comparable store sales decline was caused primarily from a decline in
sales of notebook and desktop computers. These declines were partially offset by an increase in sales of mobile phones
and tablets in Canada.
• Entertainment: The 17.4% comparable store sales decline was primarily from decreases in gaming in Canada as a
result of factors similar to those experienced in our Domestic segment.