Consumer electronics retailer Best Buy early Thursday beat earnings estimates for its fiscal first quarter on weaker-than-expected sales. It also lowered its full-year outlook to account for the Trump tariffs. Best Buy stock fell on the news.
The Richfield, Minn.-based company earned an adjusted $1.15 a share on sales of $8.77 billion in the quarter ended May 3. Analysts polled by FactSet had expected earnings of $1.09 a share on sales of $8.81 billion. On a year-over-year basis, Best Buy earnings declined 4% while sales fell 1%.
For its full fiscal 2026, Best Buy now expects to earn an adjusted $6.23 a share on sales of $41.5 billion. That's based on the midpoint of its guidance. It previously forecast adjusted earnings of $6.40 a share on sales of $41.8 billion. In fiscal 2025, Best Buy earned an adjusted $6.37 a share on sales of $41.53.
"Today we are updating our full-year guidance to incorporate the impact of tariffs," Chief Financial Officer Matt Bilunas said in a news release. "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."
Late Wednesday, a federal trade court struck down many Trump tariffs. However, on Thursday, a federal appeals court granted the Trump administration's request for a stay of Wednesday's ruling.
In Q1, sales declines in home theater, appliances and drones were partially offset by growth in the computing, mobile phone and tablet categories, Best Buy said.
With its fiscal Q1 report, Best Buy has now posted 14 consecutive quarters of declining sales on a year-over-year basis. Much of that has to do with its shrinking store count.
On the stock market today, Best Buy stock sank 7.3% to close at 66.32.
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