Domestic revenue of $9.89 billion decreased 8.7% versus last year primarily driven by a comparable sales decline of 8.5%. Domestic gross profit rate was 21.9% versus 23.3% last year. The lower gross profit rate was primarily due to: (1) lower services margin rates, including pressure associated with the Best Buy Totaltech membership offering; (2) lower product margin rates, including increased promotions; and (3) higher supply chain costs. These pressures were partially offset by higher profit-sharing revenue from the company’s private label and co-branded credit card arrangement. Domestic GAAP SG&A was $1.74 billion, or 17.6% of revenue, versus $1.84 billion, or 16.9% of revenue, last year. International revenue of $753 million decreased 5.4% versus last year. This decrease was primarily driven by the exit of operations in Mexico in FY22 and a comparable sales decline of 1.4% in Canada. International GAAP gross profit rate was 24.3% versus 23.7% last year.
S&P Global (NYSE: SPGI) is suspending financial guidance for the full year 2022. Macroeconomic conditions have deteriorated since S&P Global Inc. (“the Company”) last provided financial guidance on May 3, 2022, negatively impacting the Company’s expectations for GDP growth and debt issuance volumes. Given the volatility and uncertainty in the issuance environment, the Company cannot affirm its previously issued guidance and expects to reintroduce formal financial guidance in conjunction with its second quarter 2022 earnings results.
Debt issuance volumes have been extraordinarily weak year-to-date. Should similar trends continue through the end of 2022, market issuance could see year-over-year declines in the high teens. Rated, or billed, issuance could be approximately 30-35% lower than the previous year, and leveraged loan volumes could be approximately 40% lower. In such a scenario, Ratings revenue could be negatively impacted by as much as $600 million relative to previous revenue guidance and the Company would expect Ratings adjusted operating margin in the high 50s range.
At this point, the Company does not expect a change to its previously stated capital return targets.
more at: https://investor.spglobal.com/news-releases/news-details/2022/SP-Global-Suspends-2022-Financial-Guidance-Due-to-Extraordinarily-Weak-Market-Conditions-for-its-Ratings-Business-Expects-to-Re-introduce-with-Second-Quarter-2022-Earnings-Results/default.aspx