Best Buy Tuesday Releases the highest expected fiscal fourth fiscal year revenue and revenue, but CEO Corie Barry expects prices for U.S. consumers to rise because President Donald Trump’s tariffs Effective about China and Mexico.
Barry said that on Best Buy’s earnings call, China and Mexico were the company’s first two supply chain sources, with about 55% and 20% of its products coming from those countries.
“Trade is crucial to our businesses and industries. The consumer electronics supply chain is highly global, technological and complex,” Barry said. “We expect that suppliers across the entire category will be likely to go up prices for retailers through a certain level of tariff charges, making prices for U.S. consumers.”
Barry’s comments are as consumers and investors try to explain how new responsibilities will affect household budgets, corporate sales and the U.S. economy. She talks soon Target CEO Brian Cornell told CNBC He expects consumers will see higher product prices in a few days due to Mexico’s tariffs.
Barry added that the company imported 2% to 3% of its products directly, while Best Buy is reviewing and adjusting its supply chain procurement. She said the company typically offers six weeks at a time and she hopes pricing changes will affect the second to fourth quarters of the fiscal year.
“Obviously, the giant wildcard here is the consumer’s reaction to the price increase, and the current general consumer confidence has shown some weaknesses in a certain year given the massive price increase throughout the year,” Matt Bilunas, the best CFO, said in the call.
The company’s shares fell more than 13% on Tuesday morning.
Here’s how consumer electronics companies compare to Wall Street’s expectations for the company’s fiscal fourth fiscal year 2025 Quarterly as of February 1, according to LSEG’s survey of analysts:
- Earnings per share: $2.58 adjusted with expected $2.40
- income: $13.95 billion vs. $137 billion expected
In the same period a year ago, fourth-quarter revenue fell 4.8% from $14.65 billion.
Best Buy reported the fourth quarter Net income was $117 million, or 54 cents per share, while net income was $460 million, or $2.12 per share. Best Buy adjusted the non-cash goodwill damage charges related to Best Buy Health and other restructuring plans, and Best Buy reported earnings per share of $2.58 in the fourth quarter.
Comparable sales, defined by Best Buy as online sales and store revenue for at least 14 months, up 0.5% year-on-year for the quarter, excluding the additional week for fiscal 2024. Best Buy forecast Change from flat to 3%. In the United States, quarterly comparable sales increased by 0.2% year-on-year.
Revenue from fiscal 2025 for the full year was US$41.53 billion, down 4.4% from US$43.45 billion in fiscal 2024. Retailers estimate Best Buy’s revenue for fiscal 2025 was less than the previous week, with revenue of $735 million, and revenue for fiscal 2024.
For fiscal 2026, the company issued a full-year guidance of $41.4 billion to $42.2 billion in revenue and comparable sales growth rates of 0% to 2%.
“We believe consumers will behave roughly similarly to last year – staying resilient but still dealing with high inflation, which will drive their lives, which makes them pay attention and considerate to the purchase of large tickets, while we continue to see a consumer willing to spend high-priced products on demand or when technological innovation will emerge.”
Best Buy said the guidance will not consider the impact of recent or proposed tariffs. president Donald Trump increased by 10% tariff He was ordering in January in a 10% tariff on the country starting Tuesday. In addition, from Mexico and Canada also began on Tuesday.
Barry said that in earnings calls, Chinese tariffs would reduce comparable sales by 1%, but a 20% tariff would not necessarily result in a 2% reduction in comparable sales.
“We’ve never seen the breadth of this tariff, which of course affects the entire industry. So it’s not only a best problem, but a broad industry problem. I say it’s because it makes estimating the impact more difficult,” Barry said.
Barry said Best Buy will launch its U.S. third-party market features in the middle of this year. The company will have features such as fulfillment functions in features such as the seller and product yield in Best Buy stores. The company already has a third-party market in Canada.
“It’s still early in the process, and we’re happy with the seller’s keen interest and think it shows that this is a promising launch,” Barry said.
The retailer’s computer and mobile phone sales grew 6.5% year-on-year in the quarter and 8.5% overseas. Although the phone refresh cycle has not had much impact on sales in the past six years AT&T and Verizon Barry said in a call with reporters on Tuesday that employees who helped customers at the Best Buy store gave the company more confidence in the sales of its phones.
Among them Slow household sales In the U.S., Bilunas said Best Buy’s electrical business is facing challenges as consumers replace individual units primarily rather than buying packages and premium items. In the U.S., sales of comparable appliances rose 11.4% year-on-year, although they grew 4.9% in Best Buy’s international space.
Correction: Best Buy CEO Corie Barry spoke with reporters on Tuesday. The earlier version misunderstood the day.
