Best Buy Co., Inc. (NYSE:BBY) Q1 2019 Earnings Conference Call - Preliminary Transcript

May 24, 2018 • 08:00 am ET

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Best Buy Co., Inc. (NYSE:BBY) Q1 2019 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to Best Buy's Q1 Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session (Operator Instructions). As a reminder, this call is being recorded for playback and will be available by approximately 11:00 a.m. Eastern Time today. (Operator Instructions).

I will now turn the conference over to Mollie O'Brien, Vice President of Investor Relations. Please go ahead, ma'am.

Executive
Mollie O'Brien

Good morning and thank you. Joining me on the call today are Hubert Joly, our Chairman and CEO and Corie Barry, our CFO. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, and an explanation of why these non-GAAP financial measures are meaningful can be found in this morning's earning release, which is available on our website, investors.bestbuy.com.

Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may address the financial condition, business initiatives, growth plans, investments and expected performance of the company and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's current earnings release and our most recent 10-K for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.

I will now turn the call over to Hubert.

Executive
Hubert Joly

Good morning, everyone, and thank you for joining us. I will begin today with a review of our first quarter performance and then provide an update on our progress against our fiscal 2019 priorities as we continue to implement Best Buy 2020: Building the New Blue strategy. I will then turn the call over to Corie for additional details on our quarterly results in our outlook.

So, today we are reporting the first quarter Enterprise comparable sales growth of 7.1% and non-GAAP diluted EPS of $0.82, which is up 37% compared to last year. This strong performance was broad based, with positive comparable sales across all channels, geographies on most of our product categories. The top-line strength is a result of three main factors. Continued healthy consumer confidence, product innovation in multiple areas of technology, and our unique value proposition resonating with customers. We are executing well, and customers are responding positively to the unique experience we provide to them online, in stores and their homes. This is of course tied to our continued investments in the customer experience. And so, I want to thank all of our associates for their commitment to our company's purpose to enrich lives through technology and their continued great leadership and execution.

Now we only had a strong first quarter we also continue to make significant progress in the implementation of