Best Buy has cut its profit outlook due to rising tariffs on imported electronics. The retailer’s CEO, Corie Barry, said prices would need to be raised to offset the costs of the duties.
Barry had previously warned that Best Buy would likely have to raise prices due to the tariffs. However, she did not specify which items would be affected, citing competitive reasons.
Best Buy joins other companies like Abercrombie & Fitch and Macy’s in cutting its profit outlook this week due to tariffs. The company reported better-than-expected earnings but missed quarterly revenue expectations.
The impact of tariffs on the US consumer electronics industry has been significant, with many companies struggling to absorb the costs. Best Buy is a key player in this market, selling iPhones, TVs, laptops, and other products that are often made in China or other parts of Asia.
Despite the challenges, Barry said she was focused on delivering value to customers. She outlined several strategic priorities for the year, including improving the customer experience, launching new product lines, and increasing efficiency.
The company’s earnings call also highlighted the resilience of its smartphone sales business. Despite a decline in overall revenue, Best Buy posted comparable sales growth for mobile phones for the first time in three years.
However, the uncertainty surrounding tariffs is still a concern. A federal trade court ruling that may change the backdrop of trade policy has led Barry to emphasize the need for flexibility and adaptability.
Source: https://www.cnbc.com/2025/05/29/best-buy-bby-q1-2026-earnings-.html