Best Buy Cuts 2025 Outlook Amid Tariff Uncertainty

Best Buy has revised its annual outlook for fiscal 2025, lowering projected revenue to between $41.1 billion and $41.9 billion and earnings per share to $6.15-$6.30, citing ongoing tariff-related uncertainty and pressure on electronics imports from China. The company reported a 0.9% year-over-year decline in first-quarter revenue to $8.77 billion and an 18% drop in net earnings, although adjusted earnings per share surpassed analyst forecasts. Comparable sales fell 0.7%, while domestic online revenue rose by 2.1%. Best Buy noted the fluid nature of the tariff situation, referencing recent court rulings and ongoing negotiations that add to business uncertainty. In response, the company has diversified its sourcing beyond China. The retailer's shares declined sharply as investors reacted to the reduced outlook and continued trade policy volatility.