Best Buy reported stronger-than-expected first-quarter earnings on Thursday, but reduced its full-year profit forecast, warning of persistent uncertainty tied to United States President Donald Trump's evolving trade policy.
Adjusted earnings per share came in at $1.15, above analyst forecasts of $1.09. However, revenue totalled US$8.77 billion, just short of the $8.81 billion expected.
Best Buy shares fell 7.3% during Thursday's regular trading.
Comparable sales - defined as revenue from online channels and stores open for at least 14 months - declined 0.7% year-over-year.
U.S. comparable sales saw a similar 0.7% drop as consumers scaled back purchases of home theatres, appliances and drones.
The company also revised its fiscal 2026 revenue forecast to between $41.1 billion and $41.9 billion, down from its prior estimate of $41.4 billion to $42.2 billion.
It now expects adjusted earnings per share to range from $6.15 to $6.30, compared with the earlier projection of $6.20 to $6.60.
Chief executive officer (CEO) Corie Barry commented on the company’s strategy for managing tariff effects: "We have been actively employing many tactics in partnership with our vendors as we navigate the dynamic situation and work to mitigate the impact of tariffs on our customers and business.
"As we look to the rest of the year, there is still uncertainty related to tariff levels, timing and countries involved in addition to the potential actions of others in the industry as well as the potential reaction of American consumers.
"However, based on the current tariff levels we just articulated, we are updating our annual outlook with our best view at this time."
Chief Financial Officer Matt Bilunas noted: "We expect annual comparable sales growth to be in the range of down 1% to up 1%, and our adjusted operating income rate to be similar to last year at approximately 4.2%.
“Our underlying working assumptions are that tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behaviour from the trends we have seen in recent quarters.”
The retailer joins a growing list of U.S. companies, including Abercrombie & Fitch and Macy’s, that have trimmed their outlooks in response to trade-related headwinds.
At the time of writing, Best Buy (NYSE: BBY) stock was trading at US$66.24, easing 0.1% in extended deals from Thursday's close of $66.32. Best Buy's market cap stands at $14.04 billion.
