Best Buy Co Inc (NYSE:BBY) posted mixed earnings for the first quarter and cut its full-year sales and profit outlook as tariffs have increased the cost of electronics.
For fiscal 2026, the retailer now expects revenue in the range of $41.1 billion to $41.9 billion, down from its earlier guidance of $41.4 billion to $42.2 billion.
Comparable sales are expected to be negative 1% to 1%, compared to earlier guidance of flat to 2%.
Best Buy expects earnings per share (EPS) in the range of $6.15 to $6.30, compared to its previous guidance of $6.20 to $6.60.
The company’s guidance is being updated 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,” Bilunas said.
For the fiscal first quarter, revenue fell 0.9% year-over-year to $8.77 billion, slightly below Wall Street estimates of $8.81 billion. This was attributed to a decline in comparable sales of 0.7%.
The decline in domestic revenue was led by drops in home theater, appliances, and drones, partially offset by growth in the computing, mobile phone and tablet categories.
A bright spot was adjusted EPS, which came in at $1.15, beating estimates of $1.09.
Shares of Best Buy traded down 9.4% at about $65 on Thursday morning.