Best Buy Stock Tumbles as Retailer Lowers Outlook on Tariffs Hit
Best Buy shares tumbled more than 8% to lead S&P 500 decliners Thursday after the electronics retailer lowered its full-year outlook because of tariffs.
Best Buy gets a large portion of its products from China and Mexico, both of which have been hit by tariffs imposed by President Donald Trump.
Best Buy shares are down by more than a fifth so far this year.Best Buy (BBY) shares tumbled more than 8% to lead S&P 500 decliners Thursday after the electronics retailer lowered its full-year outlook because of tariffs.
The retailer now sees fiscal 2026 revenue between $41.1 billion and $41.9 billion, below its prior guidance of $41.4 billion to $42.2 billion; comparable sales ranging from down 1% to up 1%, versus flat to up 2.0%; and adjusted earnings per share (EPS) of $6.15 to $6.30, down from $6.20 to $6.60. Despite the cuts, the midpoints of Best Buy's new projections all were in line with or above Visible Alpha consensus estimates.
"Today we are updating our full-year guidance to incorporate the impact of tariffs," Best Buy CFO Matt Bilunas said. "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 behavior from the trends we have seen in recent quarters."
Best Buy gets a large portion of its products from China and Mexico, both of which have been hit by the tariffs imposed by President Donald Trump. China accounted for 55% and Mexico 20% of the company's sourcing in its fiscal 2025, according to its annual report.
The lowered full-year projections came as the retailer reported mixed first-quarter results, with adjusted EPS of $1.15 topping Visible Alpha estimates but revenue of $8.77 billion falling short. Comparable store sales fell 0.7% year-over year, far greater than the projected 0.2% decline.
Best Buy shares are down nearly 25% this year.
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