$Best Buy (BBY.US)$ reported a third-quarter FY23 sales decline of 11.1% year-on-year to $10.59 billion, beating the consensus of $10.31 billion.

Domestic revenue decreased 10.8% Y/Y, and International revenue fell 14.9%. Enterprise comparable sales decreased 10.4%.

Gross profit fell 16.8% Y/Y to $2.3 billion, with the margin contracting 150 basis points to 22%. Operating income as a percentage of revenue contracted 220 basis points to 3.4%. Operating income for the quarter fell 45.5% to $365 million.

Non-GAAP EPS of $1.38 beat the analyst consensus of $1.03.

Best Buy held $1.3 billion in cash and equivalents as of October 29, 2022. Cash used by operating activities for the nine months totaled $(108) million.

BBY's board of directors has authorized the payment of its regular quarterly cash dividend of $0.88 per common share, payable on January 3, 2023, to shareholders of record on December 13, 2022.

"We are updating our FY23 outlook to flow through our better-than-expected Q3 results while keeping our Q4 expectations unchanged," said Matt Bilunas, Best Buy CFO.

BBY said it resumed share repurchases in November after pausing during Q2 and now expects to spend approximately $1 billion in share repurchases this year.

Outlook: For FY23, the company expects comparable sales to decline by around 10% (prior view 11% decline).

It sees the adjusted operating margin to be slightly higher than 4% (prior view approximately 4%).