Best Buy closed 24 large format stores in fiscal 2024, and expects to close approximately 10 to 15 Best Buy stores in fiscal 2025. This reflects ongoing adjustments to their real estate portfolio to optimize store performance.

The company ended the year with approximately seven million paid members. Changes to the membership program are expected to provide more flexibility and lower costs to serve.

Capital investments for fiscal 2025 are concentrated more on existing store updates and refreshes and less on major remodels or store openings. This indicates a shift towards optimizing existing assets.

Best Buy commenced an enterprise-wide restructuring initiative intended to align field labor resources, redirect corporate resources, and right-size resources. This indicates a proactive approach to managing costs and improving operational efficiency.

Domestic SG&A decreased in fiscal 2024, primarily due to lower store payroll and advertising expense. This suggests successful cost management efforts.

Best Buy has a supply chain financing program with an independent financial institution, whereby some of their suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution. This program is utilized by some suppliers, and the liability associated with the funded participation in the program was $426 million and $386 million as of February 3, 2024, and January 28, 2023, respectively.

The 10-K highlights macroeconomic pressures, including inflation and geopolitical issues like the Ukraine conflict and Israel-Hamas war, as potential risks that could adversely affect consumer spending and financial results.

The company acknowledges the heightened risk of cybersecurity attacks and data security incidents, emphasizing the importance of securing customer, employee, and company information.

The 10-K states that Best Buy's reliance on key vendors and mobile network carriers subjects them to various risks and uncertainties, including the ability to secure acceptable terms and maintain profitability.

The company faces strong competition from multi-channel retailers, e-commerce businesses, technology service providers, traditional store-based retailers, vendors and mobile network carriers, which directly affects revenue and profitability.

Digital technology enables consumers to compare prices in real-time, putting additional pressure on Best Buy to maintain competitive prices, which could put pressure on margins.

Online and multi-channel retailers continue to focus on delivery services, with customers increasingly seeking faster, guaranteed delivery times and low-cost or free shipping. The company's ability to offer competitive delivery times and delivery costs depends on many factors.

The company's ongoing drive to reduce costs and increase efficiency represents a strategic imperative. Failure to successfully manage costs could have a material adverse impact on profitability and curtail the ability to fund growth or other critical initiatives.

Interruptions and other factors affecting stores and supply chain, including in-bound deliveries from vendors, may adversely affect the business. This includes interruptions to delivery capabilities, failure of third parties to meet standards, disruptions to systems, and global supply chain impacts.

The effective and efficient operation of the business is dependent on information technology systems and those of information technology vendors. Any failure or interruption in these systems could have a material adverse impact on the business.

Many of the products Best Buy sells are highly susceptible to technological advancement, product life cycle fluctuations and changes in consumer preferences. This rapid pace of change can be hard to predict and manage.

The integration of Al into operations increases cybersecurity and privacy risks (including unauthorized or misuse of Al tools) and could lead to potential unauthorized access, misuse, acquisition, release, disclosure, alteration or destruction of company and customer data or other confidential or proprietary information and challenge the stability of our platforms.

Digital sales comprised 33% of Domestic revenue in fiscal 2024 compared to 19% in fiscal 2020. The company is continuing to adapt omnichannel capabilities to ensure they maintain a leading position in an increasingly digital age and evolving retail landscape.

Best Buy repurchased $340 million of shares in fiscal 2024 and expects to spend approximately $350 million on share repurchases in fiscal 2025. This is significantly lower than previous years.

The Board approved a 2% increase in the regular quarterly cash dividend to $0.94 per share, signaling continued commitment to returning value to shareholders.

Capital expenditures are expected to be between $750 million and $800 million in fiscal 2025, a slight decrease from $795 million in fiscal 2024, indicating a focus on efficient capital use.

Regulators, customers, investors, employees and other stakeholders are increasingly focusing on cybersecurity and corporate responsibility and sustainability matters and related disclosures.

Concern over climate change may result in new or additional legal, legislative and regulatory requirements to reduce or mitigate the effects of climate change on the environment, which could result in future tax, compliance, transportation and utility cost increases.

Regulators, customers, investors, employees and other stakeholders are increasingly focusing on cybersecurity and corporate responsibility and sustainability matters and related disclosures.

The consumer electronics industry is challenged by various macroeconomic pressures, including high inflation, increased spending outside the home, the pull-forward of demand in prior years and lower levels of product innovation.

Geopolitical tensions, including the potential implementation of more restrictive trade policies, higher tariffs or the renegotiation of existing trade agreements in the U.S. or countries where Best Buy sells products and services or procure products, could have a material adverse effect on their business.

Regulatory activity that affects the retail sector has grown in recent years, increasing the risk of fines and additional operating costs associated with compliance.