Best Buy has lowered its full-year sales and profit guidance, citing mounting pressure from US tariffs and weakening demand for high-ticket electronics.
The company now expects fiscal 2026 comparable sales to fall between 1% and rise up to 1%, down from a previous forecast of flat to 2% growth.
It also revised its adjusted earnings per share target to $6.15–$6.30, compared to a prior range of $6.20–$6.60.
Shares dropped 6% in early trading after Best Buy reported Q1 same-store sales declined 0.7%, slightly more than the 0.6% drop analysts expected. However, earnings per share of $1.15 beat forecasts of $1.09.
CEO Corie Barry said on the earnings call that while consumers remain resilient, they are becoming “value-focused and thoughtful about big-ticket purchases” amid lingering inflation and rising borrowing costs.
Best Buy imports 30–35% of its products from China, leaving it vulnerable to ongoing tariff-related price hikes on goods like appliances, gaming consoles, and home entertainment systems.
While the company is adjusting pricing and promotions, it aims to stay “competitively priced,” executives noted.
A recent US trade court ruling that blocked many of President Trump’s proposed tariffs added more uncertainty to an already fragile retail environment.
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