Best Buy lowers revenue outlook for Fiscal Year 2026 due to tariffs
Best Buy released its quarterly earnings report on Thursday detailing its missed revenue earnings and the impact of tariffs on its full-year sales.
Matt Bilunas, Best Buy CFO, said in a news release that the company is updating its full-year guidance to reflect the potential impact of the tariffs.
"We expect annual comparable sales growth to be in the range of down 1% to up 1%, and our adjusted operating income rate to be similar to last year at approximately 4.2%," Bilunas said.
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For Fiscal Year 2026, the retail giant revealed a new revenue projection of $41.1 billion to $41.9 billion, which is now lower than its prior projections of $41.4 billion to $42.2 billion.
"As you can imagine, and based on our history, we will continue to scenario-plan and adjust with agility as the situation evolves," Bilunas said.
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Best Buy CEO, Corie Barry, said in the news release that she was proud of how their teams have been operating, adjusting and executing to deliver.
"We remain focused on our FY26 strategic priorities, which include the following: 1) drive omni-channel experience improvements that resonate with our customers; 2) launch and scale incremental profit streams, including Best Buy Marketplace and Best Buy Ads; and 3) drive operational effectiveness and efficiency to fund strategic investments and offset pressures," Barry said.
Best Buy said they saw losses and sales decline in categories like home theater, appliances and drones.
In the same breath, Best Buy’s growth in the computing, mobile phone and tablet categories partially offset those losses.
While the uncertainty of President Donald Trump’s tariffs timeline lingers for many companies, Bilunas believes they aren’t going anywhere anytime soon.
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"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.
Nick Butler is a reporter for Fox Business. Do you have any tips? Reach out to Nick.Butler@Fox.com.