Best Buy Stock Slides After Company Slashes Full-Year Revenue, Profit Guidance To Reflect Trump Tariffs' Impact

Shares of consumer electronics retailer Best Buy Co Inc. (BBY) declined 2% in Thursday’s pre-market after the company slashed its full-year revenue and profit guidance to factor in the impact of tariffs.

The firm expects revenue of $41.1 billion to $41.9 billion compared to the prior guidance of $41.4 billion to $42.2 billion. It expects adjusted diluted earnings per share (EPS) of $6.15 to $6.30, versus an earlier guidance of $6.20 to $6.60.

CFO Matt Bilunas said the company’s 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 seen in recent quarters.

During the first quarter, revenue declined to $8.77 billion compared to $8.85 billion in the same quarter a year ago and below a Wall Street estimate of $8.82 billion.

Adjusted diluted earnings per share (EPS) stood at $1.15 compared to an analyst estimate of $1.09.

Domestic revenue declined 0.9% to $8.13 billion compared to last year, primarily driven by a comparable sales decline of 0.7%. Best Buy said the largest drivers of comparable sales decline on a weighted basis were home theater, appliances, and drones.

These were partially offset by growth in the computing, mobile phone, and tablet categories.

At the same time, International revenue fell 0.6% to $640 million versus last year, primarily driven by a negative foreign currency impact of approximately 450 basis points and a comparable sales decline of 0.7%.

Best Buy said it expects to spend approximately $300 million on share repurchases during FY26. Its board of directors has authorized the payment of a regular quarterly cash dividend of $0.95 per common share.

BBY stock has declined 17% in 2025 and is down 0.53% in the past 12 months.

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