Best Buy maintained full-year sales and profit forecasts despite quarterly results topping estimates and tariff-induced uncertainty in the second half. Shares fell 5.7% as investors focused on potential margin hits from higher U.S. import tariffs. Best Buy raised prices on some goods but kept increases below overall tariff rates through mitigation strategies. The retailer sources most goods from China and has diversified the supply chain while consolidating suppliers to negotiate better terms. Sales have been pressured for three years as price-sensitive shoppers delay big-ticket purchases and wait for promotional events. Strong demand for Nintendo Switch 2 consoles and AI-powered laptops and phones helped lift comparable sales by 1.6% for the quarter ended Aug. 2.
Big-ticket purchases are approached more carefully, though consumers continue to spend on expensive technology when there is a clear need or innovation.
Tariffs and a pullback in discretionary big-ticket categories remain a drag, and unlike general merchandise (retailers), Best Buy has limited fallback categories to absorb that pressure.
Collection
[
|
...
]